{"id":4294,"date":"2020-10-28T01:24:53","date_gmt":"2020-10-28T01:24:53","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-financialaccounting\/?post_type=chapter&#038;p=4294"},"modified":"2020-11-17T16:50:13","modified_gmt":"2020-11-17T16:50:13","slug":"introduction-to-financial-statement-presentation-3","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/chapter\/introduction-to-financial-statement-presentation-3\/","title":{"raw":"Introduction to Financial Statement Presentation","rendered":"Introduction to Financial Statement Presentation"},"content":{"raw":"<h2>What you will learn to do: illustrate financial statement presentation of stockholder's equity<\/h2>\r\nThe stockholders\u2019 equity section of the balance sheet reports the worth of the stockholders. It has two subsections:\r\n\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/04003725\/entrepreneur-1340649_1920-1.jpg\"><img class=\"size-medium wp-image-5116 alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/04003725\/entrepreneur-1340649_1920-1-300x212.jpg\" alt=\"A line graph with an arrow pointing up.\" width=\"300\" height=\"212\" \/><\/a>\r\n<ul>\r\n \t<li style=\"font-weight: 400\">Paid-in capital (from stockholder investments)<\/li>\r\n \t<li style=\"font-weight: 400\">Retained earnings (profits generated by the corporation)<\/li>\r\n<\/ul>\r\nTotal paid-in capital is the sum of:\r\n<ul>\r\n \t<li style=\"font-weight: 400\">Preferred Stock plus Paid-in Capital in Excess of Par - Preferred plus<\/li>\r\n \t<li style=\"font-weight: 400\">Common Stock plus Paid-in Capital in Excess of Par - Common plus<\/li>\r\n \t<li style=\"font-weight: 400\">Paid-in Capital from Sale of Treasury Stock.<\/li>\r\n<\/ul>\r\nSince treasury stock is not currently owned by stockholders, it should not be included as part of their worth. Therefore, the value of treasury stock shares is subtracted out to arrive at total stockholders\u2019 equity.\r\n\r\nIn summary, total stockholders\u2019 equity equals total paid-in capital plus retained earnings minus treasury stock.","rendered":"<h2>What you will learn to do: illustrate financial statement presentation of stockholder&#8217;s equity<\/h2>\n<p>The stockholders\u2019 equity section of the balance sheet reports the worth of the stockholders. It has two subsections:<\/p>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/04003725\/entrepreneur-1340649_1920-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-5116 alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/04003725\/entrepreneur-1340649_1920-1-300x212.jpg\" alt=\"A line graph with an arrow pointing up.\" width=\"300\" height=\"212\" \/><\/a><\/p>\n<ul>\n<li style=\"font-weight: 400\">Paid-in capital (from stockholder investments)<\/li>\n<li style=\"font-weight: 400\">Retained earnings (profits generated by the corporation)<\/li>\n<\/ul>\n<p>Total paid-in capital is the sum of:<\/p>\n<ul>\n<li style=\"font-weight: 400\">Preferred Stock plus Paid-in Capital in Excess of Par &#8211; Preferred plus<\/li>\n<li style=\"font-weight: 400\">Common Stock plus Paid-in Capital in Excess of Par &#8211; Common plus<\/li>\n<li style=\"font-weight: 400\">Paid-in Capital from Sale of Treasury Stock.<\/li>\n<\/ul>\n<p>Since treasury stock is not currently owned by stockholders, it should not be included as part of their worth. Therefore, the value of treasury stock shares is subtracted out to arrive at total stockholders\u2019 equity.<\/p>\n<p>In summary, total stockholders\u2019 equity equals total paid-in capital plus retained earnings minus treasury stock.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-4294\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Introduction to Financial Statement Presentation. <strong>Authored by<\/strong>: Joseph Cooke. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li><strong>Authored by<\/strong>: Gerd Altmann. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/photos\/entrepreneur-idea-competence-vision-1340649\/\">https:\/\/pixabay.com\/photos\/entrepreneur-idea-competence-vision-1340649\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: https:\/\/pixabay.com\/service\/terms\/#license<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":17,"menu_order":16,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Introduction to Financial Statement Presentation\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"\",\"author\":\"Gerd Altmann\",\"organization\":\"\",\"url\":\"https:\/\/pixabay.com\/photos\/entrepreneur-idea-competence-vision-1340649\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"https:\/\/pixabay.com\/service\/terms\/#license\"}]","CANDELA_OUTCOMES_GUID":"92aec4f4-714a-4bdc-a076-432488d334ad","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-4294","chapter","type-chapter","status-publish","hentry"],"part":805,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4294","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":5,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4294\/revisions"}],"predecessor-version":[{"id":6032,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4294\/revisions\/6032"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/parts\/805"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4294\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/media?parent=4294"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=4294"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/contributor?post=4294"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/license?post=4294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}