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, 74,000 shares issued and outstanding $ 740,000 Paid-in capital in excess of par value, common stock 320,000 Retained earnings 720,000 Total stockholders’ equity $ 1,780,000 Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. (1) Prepare the updated stockholders' equity section after the split. (2) Compute the number of shares outstanding after the split. Complete this question by entering your answers in the tabs below. Required 1Required 2
On June 30, Sharper Corporation’s
Common stock—$10 par value, 74,000 shares issued and outstanding $ 740,000
Paid-in capital in excess of par value, common stock 320,000
Retained earnings 720,000
Total stockholders’ equity $ 1,780,000
Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split.
(1) Prepare the updated stockholders' equity section after the split.
(2) Compute the number of shares outstanding after the split.
Complete this question by entering your answers in the tabs below.
Required 1Required 2
Prepare the updated stockholders' equity section after the split.
SHARPER CORPORATION
Stockholders’ Equity Section of the Balance Sheet
June 30
Total stockholders’ equity $0
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