2.Account for the issuance of stock 3.Account for retained earnings,dividends,and splits 4.Use stock values in decision making 5.Report stockholders'equity transactions in the financial statements Part II.Contents Corporations A. Corporations defined and features of a corporation 1.Separate legal entity 2.Continuous life and transferability of ownership 3.Limited liability of shareholders 4.Separation of ownership and management 5.Corporate taxation B. Organizing a corporation C. Stockholders'rights D. Stockholders'equity 1.Paid-in capital or contributed capital 2.Retained earnings Classes of stock 1.Common and preferred 2.Comparison of common stock,preferred stock,and long-term debt II.Account for the Issuance of Stock A Common stock B. Preferred stock III.Account for Retained Eamings,Dividends,and Splits A. Dividends defined B Cash dividends C. Stock dividends D Stock splits IV.Use Stock Values in Decision Making A Market value B. Liquidation value Book value D. Return on equity(ROE) V.Report Stockholders'Equity Transactions in the Financial Statements 11 11 2．Account for the issuance of stock 3．Account for retained earnings, dividends, and splits 4．Use stock values in decision making 5．Report stockholders’ equity transactions in the financial statements Part II. Contents I. Corporations A. Corporations defined and features of a corporation 1. Separate legal entity 2. Continuous life and transferability of ownership 3. Limited liability of shareholders 4. Separation of ownership and management 5. Corporate taxation B. Organizing a corporation C. Stockholders’ rights D. Stockholders’ equity 1. Paid-in capital or contributed capital 2. Retained earnings E. Classes of stock 1. Common and preferred 2. Comparison of common stock, preferred stock, and long-term debt II. Account for the Issuance of Stock A. Common stock B. Preferred stock III. Account for Retained Earnings, Dividends, and Splits A. Dividends defined B. Cash dividends C. Stock dividends D. Stock splits IV. Use Stock Values in Decision Making A. Market value B. Liquidation value C. Book value D. Return on equity (ROE) V. Report Stockholders’ Equity Transactions in the Financial Statements