Analyzing Steps in the Accounting Cycle and Recording Stockholders’ Equity (Corporate Form of Business)

Hello, The prompt is below, attached are results from the exercise mentioned in part A. Part A was completed by me, please complete part B. Let me know if you have questions or need more information.  

Portfolio Project Option #1 is for accounting students who are sensing learners and learn best from concrete materials and examples. If this is your learning style preference, you are practical and careful with detail. For this assignment, you are required to complete Part A and Part B. You will complete Parts A and B in Connect, and Part 3 of the Portfolio Project in a Word document, following the exact instructions that accompany each part.

Part A

Complete assigned problems in Connect that require you to analyze the general ledger and transactions related to the closing process and record treasury stock transactions. An Excel simulation is included in this assignment.

Part B

Assume you are the controller making a presentation during the stockholders’ annual meeting for your corporation. Provide a brief explanation to stockholders on each of the following questions:

Shares

  1. In what ways can shares be “preferred”? In which ways are they similar and different from common shares? Give real-world examples.
  2. How does the book value of shares of stock differ from the market value of shares of stock? Use a real-world example in your answer.

Dividends

  1. Discuss at least three main issues a board of directors considers when making a dividend declaration decision?
  2. How does a share dividend differ from a share split?

Retained Earnings

  1. Explain why companies place restrictions on some of their retained earnings.

Reminder: Your Part B paper should be 2-3-pages in length total and conform to APA guidelines

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