Correction to retained earnings for an error made in a previous accounting period Credited when dividends are declared, but will be paid at a later date Basic ownership of corporation Authorized stock 1. Receives dividends before 5 common stock Issued stock 2 Distribution of earnings 6 Outstanding stock 3. Common stock The price at which the stock is bought and sold 4. Preferred stock 5 Amounts received from investors in exchange for stock Dividend 6 The amount of net income or loss for each share of outstanding common stock 7 Preemptive right Increases the number of issued and outstanding shares, and decreases the par value per share Par value 8 Market value 9. Stock that has been issued and later reacquired 10. Paid-in capital stock dividend that has not been paid on cumulative preferred stock 11. Retained eamings Journal entry recording a restriction of a portion of retained earnings to limit the amount of dividends that can be paid Paid-in capital in excess of Par 12. 13. Treasury stock Stock that is held by stockholders 14 Dividends Payable Stockholder has a right to maintain share of ownership in corporation Dividends in arrears 15 > st un stock Dividend 6 The amount of net income or loss for each share of outstanding common stock 7 Preemptive right Increases the number of issued and outstanding shares, and decreases the par value per share Par value 8. Market value 9. Stock that has been issued and later reacquired 10, Paid-in capital stock dividend that has not been paid on cumulative preferred stock 11 Retained earnings Journal entry recording restriction of a portion of retained earnings to limit the amount of dividends that can be paid Paid-in capital in excess of Par 12 13, Treasury stock Stock that is held by stockholders 14. Dividends Payable Stockholder has a right to maintain share of ownership in corporation 15. Dividends in arrears Equity earned that is not distributed to stockholders 16. Stock dividends 17. Stock split Maximum number of shares of stock that may be issued Earnings per share 18. shares of stock that have been transferred to stockholders that may or may not be held by stockholders Appropriation of retained earnings v 19 20. Prior-period adjustment Difference between amount received for stock and the par value Distribution of corporation's own stock Amount assigned by company to share of stock > > >