Course Description

The procedures and logic underlying the accounting for stockholders’ equity are usually developed in introductory financial accounting courses. These courses typically do not examine in detail several crucial issues in accounting for stockholders’ equity: the repurchase of shares, the effect of stock options and dividends, and an explanation of other comprehensive income. These concepts are developed in this Self-Study program to give the reader (user) of financial statements a more thorough understanding of the accounting, presentation and analytic implications behind the numbers. Topics covered include the issue and repurchase of shares, cash and stock dividends, stock splits, comprehensive income and share based compensation, et. al.

Broderick Associates

Chris Broderick

CHRIS BRODERICK, as the primary principal of Broderick Associates, Chris Broderick translates his experience as a financial analyst to the teaching of accounting and financial statement analysis. Chris is a second-generation instructor of this family-run enterprise beginning his teaching in 1995 in association with his father. Since 1986 as a analyst with Chase Manhattan Bank, Chris has a broad expertise in international credit analysis traveling throughout the globe from his base in the New York and London offices. Later in 1989 he began training within Chase on a worldwide platform. Since joining Broderick Associates, he has trained employees with HSBC, JP Morgan Chase, TD Bank among others; both locally and globally. Throughout his career, he has also been aligned with various colleges and universities.

Course curriculum

  • 1

    Introduction, Objectives, Prerequisite Knowledge Required, Contents

  • 2

    Section 1 The Vocabulary of Stockholders' Equity

    • Vocabulary, Forms of Business, Rights of Shareholders, Equity Accounts
  • 3

    Section 2 Capital Stock

    • Capital Stock

    • Accounting for Issue of Common Stock

    • Exercise 1

    • Solution: Exercise 1

    • Exercise 2

    • Solution: Exercise 2

    • Accounting for Reacquisition of Common Stock

    • Accounting for Reacquisition of Common Stock - Cost Method Example 1

    • Exercise 3

    • Solution: Exercise 3

    • Accounting for Reacquisition of Common Stock - Cost Method Example 2

    • Exercise 4

    • Solution: Exercise 4

    • Accounting for Reacquisition of Common Stock - Cost Method Example 3

    • Exercise 5

    • Solution: Exercise 5

    • Accounting for Reacquisition of Common Stock - Par Value Method

    • Exercise 6

    • Solution: Exercise 6

    • Accounting for Retirement of Treasury Stock
  • 4

    Section 3: Distribution to Owners (Dividends and Splits)

    • Cash Dividends

    • Exercise 7

    • Solution: Exercise 7

    • Stock Dividends

    • Exercise 8

    • Solution: Exercise 8

    • Stock Splits

    • Accounting for Stock Based Compensation

    • Accounting for Stock Options (Compensatory Plans)

    • Accounting for Restricted Stock Plans

    • Exercise 9

    • Solution: Exercise 9
  • 5

    Section 4: Comprehensive Income

    • Comprehensive Income
  • 6

    Section 5 Practice Problems

    • Problem 1

    • Solution: Problem 1

    • Problem 2

    • Solution: Problem 2

    • Problem 3

    • Solution: Problem 3

    • Problem 4

    • Solution: Problem 4

    • Problem 5

    • Solution: Problem 5

    • Problem 6

    • Solution: Problem 6