On June 30, Sharper Corporations common stock is priced at $25.00 per share before any stock dividend or split, and the stockholders equity section of its balance sheet appears as follows.

Common stock$8 par value, 75,000 shares

authorized, 30,000 shares issued and outstanding $ 240,000

Paid-in capital in excess of par value, common stock 100,000

Retained earnings 340,000

Total stockholders equity $ 680,000

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.

a., b. & c. Complete the below table to calculate the retained earnings balance, total stockholders equity and number of outstanding shares.

2. Assume that the company implements a 3-for-2 stock split instead of the stock dividend in part 1.

a., b. & c. Complete the below table to calculate the retained earnings balance, total stockholders equity and number of outstanding shares.