On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock—$10 par value, 120,000 shares authorized, 90,000 shares issued and outstanding $ 900,000 Paid-in capital in excess of par value, common stock 400,000 Retained earnings 760,000 Total stockholders’ equity $ 2,060,000 Exercise 13-7 Stock split LO P2 Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. Required: (1) Prepare the updated stockholders' equity section after the split. (2) Compute the number of shares outstanding after the split.
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On June 30, Sharper Corporation’s
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Common stock—$10 par value, 120,000 shares authorized, 90,000 shares issued and outstanding |
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900,000 |
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Paid-in capital in excess of par value, common stock |
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400,000 |
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760,000 |
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Total stockholders’ equity |
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2,060,000 |
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Exercise 13-7 Stock split LO P2
Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split.
Required:
(1) Prepare the updated stockholders' equity section after the split.
(2) Compute the number of shares outstanding after the split.
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