Kansas Proposal to decrease authorized common and preferred stock

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Multi-State
Control #:
US-CC-3-118
Format:
Word; 
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This sample form, a detailed Proposal to Decrease Authorized Common and Preferred Stock document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.
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FAQ

Upon issuance, common stock is generally recorded at its fair value, which is typically the amount of proceeds received. Those proceeds are allocated first to the par value of the shares (if any), with any excess over par value allocated to additional paid-in capital.

Preferred stock is issued with a par value, often $25 per share, and dividends are then paid based on a percentage of that par. For example, if a preferred stock is issued with a par value of $25 and an 8 percent annual dividend, this means the dividend payment will be $2 per share.

The amount received from issuing preferred stock is reported on the balance sheet within the stockholders' equity section. Only the annual preferred dividend is reported on the income statement.

The issuance of preferred stock is accounted for in the same way as common stock. Par value, though, often serves as the basis for specified dividend payments. Thus, the par value listed for a preferred share frequently approximates fair value.

The issuance of preferred stock is accounted for in the same way as common stock. Par value, though, often serves as the basis for specified dividend payments. Thus, the par value listed for a preferred share frequently approximates fair value. 16.3 Issuing and Accounting for Preferred Stock and Treasury Stock umn.edu ? financialaccounting ? chapter umn.edu ? financialaccounting ? chapter

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Kansas Proposal to decrease authorized common and preferred stock