新编会计英语

bsp; 前言
  前言
    《新编会计英语》是高职会计专业开设的主干课程之一。本教材是根据2l
世纪高职高专会计专业课程教材总体规划编写的，旨在帮助学生掌握该课程的
新知识，强化学生使用英语处理会计工作和阅读英语会计文献的能力，结合职
业教育实际情况，具有难易适度、体系完整、与新会计准则和国际会计惯例同
步的特色。
    该书编写以2007年我国新企业会计准则为依据，以外商投资企业会计制
度为素材。全书共8章，主要包括以下内容：会计概述；会计循环；财务报表；
流动资产；长期资产；负债；所有者权益；外商投资企业会计管理制度(节选)。
    本书编写特色在于突出“理论够用，重在应用”的高职教育特色，做到理论
精讲，结合实例并且附有相应的图表，使教学直观、通俗易懂；在实例应用上，
力图体现2007年新企业会计准则的相关规定，在会计科目及内容上作了相关
调整和补充，并附录了2007年新企业会计科目表，以方便学生对照。全书以外
商投资企业为背景，对会计工作基本原理和核算程序和基本要素进行了系统的
介绍。每章结构统一为三大部分：会计专业知识学习、复习与练习、阅读拓展，
并附以中英对照和词汇表。
    本书由张冬梅副教授负责设计总体框架、写作大纲、组织作者撰写及承担
全书的总纂定稿。参加本书编写的人员都是担任“会计英语”课程多年、具有丰
富的教学经验和科研经验的高职院校一线教师。其中，**章由湖南科技职业
学院的谭燕老师编写，第二章和第六章由生物机电职业技术学院的邹勇燕老师
编写，第三章由湖南科技职业技术学院的谭燕老师与张冬梅老师共同执笔，第
四章由湖南工业职业技术学院的刘艳老师执笔，第五章由湖南民政职业技术学
院的周艳老师编写，第七、八章由湖南科技职业学院的张冬梅副教授执笔。
    在本书的编写过程中，相关编写人员的所在学校，中南大学出版社的谭晓
萍老师作为本书策划编辑付出了辛勤的劳动，在此一并致谢!
    编者
    2007年12月

    Chapter 7  Owner's Equity
                        Accounting Study
   7.1  Introduction of the owner' s equity
     The owner' s equity is referred as to the net assets of the business, which is
defined as the difference between the assets and liabilities. Thus, owner's equity is a
residual claim--a claim to the assets renaining after debt to creditors has been
discharged.
     There are three forms of business organization: the single proprietorship, the
partnership and the capital stock and retained earnings corporation. The owner's
equity mainly consists of two parts--capital stock and retained earnings. The principal
differences in the owner' s equity of the balance sheet are the capital stock and any
retained earnings must be segregated in the corporation accounting but do not have to
distinguish in the sole proprietorship and partnership accounting.
    7.2  Capital stock
      We must talk about the capital stock aud retained earnings of the corporation as
                                                                                                                                     /
follows:
      A corporation is a separate legal entity or invisible being which exists only by
                                                        
law. The liability of corporate shareholders is usually limited to their ownership
investment.
      The corporate charter must enumerate the amounts and kinds of stock issued.
This is the corporation' s authorized stock. Shares that have been sold and isyued to
stockholders constitute the issued stock of the corporation. Each share of stock
represents one unit of ownership in a corporation.
      Common stock represents the basic ownership class of stock for a corporation.
Common stockholders are entitled to attend stockholder' s meetings, vote for the
board of directors, and vote on other business matters. Common stockholder also have
  what is known as a preemptive right, a right to purchase a portion of any new stock
 issued so that each stockholder' s original proportionate share of ownership can be
maintained. The other major type of stock is known as" preferred stock", which
entitles the stockholders to have preferred shares of higher priority or senior status,
relative to common shares. It includes a preference as to payment of dividends and
may include a prior claim to assets in liquidation.
      Common stock is one of the main sources for a corporation and is recorded as
input or permanent capital when it is issued to the stockholders. Common stock may
be issued with a par value or with no-par value.
      A stated value to no-par value is used for recording purposes. When common
stock is sold and issued, the common stock account is credited on the par value or
the state value of the stock. If the stock is sold for more than par value ( stated
value), the excess amount over par is credited to the Premium on common stock
account( Paid-in Excess of Stated Value account). Take an illustration.
      ( 1 ) Sale of $ 1,000 shares of $ 50 par value, 10% common stock at $ 55 per
share( through an investment banker).
      Dr. Cash                                              55,000
         Cr. Capital stock                                         50,000
              Premium on common stock                               5,000
      (2) Sale of $ 1,000 shares of no-par common stock, fair value $10 per share,
and market value $ 20 per share.
      Dr. Cash                                              20,000
        Cr. Capital stock--Common stock                          10,000
              Paid-in capital in excess of stated value                10,000
   7.3  Retained earnings
     The increase in stockholder' s equit! arising from profitable operations is called
retained earnings. At the end of the year the balance of the Income account is closed
into the Retained Earnings account. If a corporation has sufficient cash, a distribution
of profits may be made to stockholders. Distributions of this nature are termed
dividends and decrease both total assets and total stockholders' equity. Thus, the
gmount of retained earnings at any balance sheet date represents the accumulated
earnings of the company since the date of incorporation minus any losses and all
dividends.
      Dividend
     In corporations, withdrawals must be accomplished more formally. The board of
directors, elected by stockholders, must meet and" declare a dividend" before a
distribution can be made to the stockholders. Dividends are profits paid to the
stockholders as a return on their investment. Three dates are important to the dividend
process.
      (1) Date of declaration: Date a dividend is declared by the board of directors.
      (2) Date of record: Stockholders who own the stock as of a certain date are
entitled to receive the dividend.
      (3) Date of payment: Date dividend checks will be mailed to stockholders of
record.
     Declaration of dividends reduces the retained earnings portion of the owners'
equity of the corporation and creates a liabnlity called Dividends Payable. Payment of
the dividend eliminates the liability and reduces assets. (usually cash)
     Some of the major transactions related to retained earnings are..
     (a) Cash dividends.
     Cash dividends reduce retained earnings and become a current liability when
dehlared. Three requirements for the payment of a cash dividend are.. retained
earnings, an adequate cash position and dividend action by the board of directors.
Dividends are paid only through action by the board of directors. An entry to record
the transactions as below:
     On the declaration date:
     Dr. Retained earnings                                   x x x
        Cr. Dividends payablemCash dividends                  x x x
     On the payment date:
     Dr. Dividends payable                                   x x x
        Cr. Cash                                             x x x
     (b) Stock dividends.