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On June 30, Sharper Corporations common stock is priced at $30.50 per share before any stock dividend or split, and the stockholders equity section of
On June 30, Sharper Corporations common stock is priced at $30.50 per share before any stock dividend or split, and the stockholders equity section of its balance sheet appears as follows.
Common stock$10 par value, 95,000 shares authorized, 38,000 shares issued and outstanding | $ | 380,000 | ||
Paid-in capital in excess of par value, common stock | 100,000 | |||
Retained earnings | 480,000 | |||
Total stockholders equity | $ | 960,000 | ||
Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock's par value. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. Before Stock Dividend Impact of Stock Dividend After Stock Dividend Stock Dividend Common stock Paid in capital in excess of par value Total contributed capital Retained earnings Total stockholders' equity Number of common shares outstanding
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