13-5 On June 30, 2017, Sharper Corporation's common stock is is priced at $65 per share before any stock dividend or split, and its stockholders' equity section of the balance sheet appears as follows: Com, stock - $10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding $500,000 Paid-in capital in excess of par value, common stock 200,000 Retained earnings 660,000 Total stockholders' equity $1,360,000 1. Assume the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stocks par value. Answer these questions about stockholders' equity as it exists after issuing the new shares. a. What is the retained earnings balance? b. What is the amount of total stockholders' equity? c. How many shares are outstanding? 2. Assume the company implements a 2 for 1 split instead of the stock dividend in part 1. Answer these questions about stockholders' equity as it exists after issuing the new shares a. What is the retained earnings balance? b. What is the amount of total stockholders' equity? c. How many shares are outstanding? 13-6 The stockholders' equity of TVX at the beginning of the day on February 5 follows: Com. stock - $10 par value, 150,000 shares authorized, 60,000 shares issued and outstanding $600,000 Paid-in capital in excess of par value, common stock 425,000 Retained earnings 550,000 Total stockholders' equity $1,575,000 On February 4, the directors declare a 15% dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $40 per share on February 5 before the stock dividend. The stock's market value is $32.50 per share on February 28. 1. Prepare entries to record both the dividend declaration and its distribution. 2. One stockholder owned 800 shares on February 5 before the dividend. Compute the book value per share and total book value of this shareholder's shares immediately before and after the stock dividend of February 5. 3. Compute the total market value of the investor's shares in part 2 as of February 5 and February 28. 13-8 York's outstanding stock consists of 80,000 shares of noncumulative 7 %% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operations the corporation declared and paid the following total cash dividends 2015 total cash dividend $15,000 2016 total cash dividend $28,000 2017 total cash dividend $200,000 2018 total cash dividend $100,000 Determine the amount of dividends paid each year to each of the two classes of stockholders preferred and common. Also compute the total dividends paid to each class for the four years combined