Question
On June 30, 2015, Sharper Corporations common stock is priced at $29.00 per share before any stock dividend or split, and the stockholders equity section
On June 30, 2015, Sharper Corporations common stock is priced at $29.00 per share before any stock dividend or split, and the stockholders equity section of its balance sheet appears as follows. |
Common stock$4 par value, 80,000 shares authorized, 32,000 shares issued and outstanding | $ | 128,000 |
Paid-in capital in excess of par value, common stock | 100,000 | |
Retained earnings | 228,000 | |
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Total stockholders equity | $ | 456,000 |
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1. | Assume that 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.,b.& c. | Complete the below table to calculate the retained earnings balance, total stockholders equity and number of outstanding shares. |
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