Modul ke: Fakultas Program Studi Pengantar Akuntansi II SAHAM KORPORASI Nurul Hidayah, SE,Ak,MSi Hari Setiyawati, SE,Ak,MSi 10 FEB Akuntansi

2 Characteristics of a Corporation A corporation is a legal entity, distinct and separate from the individuals who create and operate it. As a legal entity, a corporation may acquire, own, and dispose of property in its own name.

The stockholders or shareholders who own the stock own the corporation. Corporations whose shares of stock are traded in public markets are called public corporations.

4 Corporations whose shares are not traded publicly are usually owned by a small group of investors and are called nonpublic or private corporations. The stockholders of all corporation have limited liability. 13-1

5 Stockholders Board of CommissionersBoard of Directors Officers Employees Organizational Structure of a Corporation in Indonesia 13-1 Sumber :Accounting, 21 st Edition Warren Reeve Fess

6 Advantages of the Corporate Form  A corporation exists separately from its owners.  A corporation’s life is separate from its owners; therefore, it exists indefinitely.  The corporate form is suited for raising large amounts of money from stockholders. (Continued)

7 The stockholders control a corporation by electing a board of directors and board of Commissioners. The board meets periodically to establish corporate policy. It also selects the chief executive officer (CEO) and other major officers. 13-1

8 Advantages of the Corporate Form  A corporation sells shares of ownership, called stock. Stockholders can transfer their shares of stock to other stockholders.  A corporation’s creditors usually may not go beyond the assets of the corporation to satisfy their claims. (Concluded)

Disadvantages of the Corporate Form  Stockholders control management through a board of directors (in Indonesia, troughs a board of commissioners).  As a separate legal entity, the corporation is subject to taxation. Thus, net income distributed as dividends will be taxed at both the corporate and individual levels.  Corporations must satisfy many regulatory requirements.

10 First step, the founders need to check if their proposed name of the company has not been used by other. Second step, All founders need to sign the Deed of Establishment before a public notary. Third step, the public notary then will file application of establishment with the Minister of Law and Human Rights. This process can be done on-line, but only public notary have access to the web site. Fourth step, such establishment and ratification will then be published in the Supplement to State Gazette of the Republic of Indonesia. Forming a Corporation In Indonesia 13-1

Organization Structure of a Corporation Costs may be incurred in organizing a corporation. The recording of a corporation’s organizing costs of Rp8,500,000 on January 5 is shown below: Jan. 5Organizational Expense Cash Paid costs of organizing the corporation.

12 The owner’s equity in a corporation is called stockholders’ equity, shareholders’ equity, shareholders’ investment, or capital.

The two sources of capital found in the Stockholders’ Equity section of a balance sheet are paid-in capital or contributed capital (capital contributed to the corporation by stockholders and others) and retained earnings (net income retained in the business). Stockholders’ Equity

14 Stockholders’ Equity Section of a Corporate Balance Sheet Stockholders’ Equity Paid-in capital: Common stockRp330,000,000 Retained earnings 80,000,000 Total stockholders’ equity Rp410,000,000 If there is only one class of stock, the account is entitled Common Stock or Capital Stock.

15 Characteristics of Stock The number of shares of stock that a corporation is authorized to issue is stated in the charter. A corporation may reacquire some of the stock that has been issued. The stock remaining in the hands of stockholders is then called outstanding stock.

16 Shares of stock are often assigned a monetary amount, called par. Corporations may issue stock certificates to stockholders to document their ownership. Some corporations have stopped issuing stock certificates except on special request.

17 Stock issued without a par is called no-par stock. Some states require the board of directors to assign a stated value to no-par stock. Some state laws require that corporations maintain a minimum stockholder contribution, called legal capital, to protect creditors.

18 Authorized Number of Shares Authorized, Issued, and Outstanding Issued Outstanding Outstanding Issued Outstanding Sumber : Accounting, 21 st Edition Warren Reeve Fess

19 A corporation has 1,000 shares of Rp4,000 preferred stock and 4,000 shares of common stock outstanding. The net income, amount of earnings retained, and the amount of earnings distributed are as follows: Net income Rp20,000,000 Rp9,000,000 Rp62,000,000 Amount retained 10,000,000 6,000,000 40,000,000 Amount distributed Rp10,000,000 Rp3,000,000 Rp22,000,

20 Dividends to Common and Preferred Stock

PT A mengotorisasi dan menjual saham preferen 10,000 shares, $100 par, dan 100,000 saham biasa (common stock), $20 par. Penerbitan Saham

Jurnal penerbitan saham Pada 1April separo dari saham tersebut di jual secara tunai pada harga nominal. Apr.1Cash1, Issued preferred stock and common stock at par. Preferred Stock Common Stock1,

Jika saham di jual pd harga Premium Saham preferren di jual cash at $55, nominal $50 Mar.15Cash Issued 2,000 shares of $50 par preferred stock at $55. Preferred Stock Paid-in Capital in Excess of Par-- Preferred Stock

Issuing Stock with a Stated Value On March 30, issued 1,000 shares of no-par common stock at $40; stated value, $25. Mar.30Cash Issued 1,000 shares of no-par common stock at $36; stated value, $25. Common Stock Paid-in Capital in Excess of Stated Value

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