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, 88,000 shares issued and outstanding $ 880,000 Paid-in capital in excess of par value, common stock 390,000 Retained earnings 755,000 Total stockholders’ equity $ 2,025,000 Required: (1) Prepare the updated stockholders' equity section after the distribution is made. (2) Compute the number of shares outstanding after the distribution is made.
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, 88,000 shares issued and outstanding $ 880,000 Paid-in capital in excess of par value, common stock 390,000 Retained earnings 755,000 Total stockholders’ equity $ 2,025,000 Required: (1) Prepare the updated stockholders' equity section after the distribution is made. (2) Compute the number of shares outstanding after the distribution is made.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On June 30, Sharper Corporation’s
| Common stock—$10 par value, 120,000 shares authorized, 88,000 shares issued and outstanding | $ | 880,000 | |
| Paid-in capital in excess of par value, common stock | 390,000 | ||
| 755,000 | |||
| Total stockholders’ equity | $ | 2,025,000 | |
Required:
(1) Prepare the updated stockholders' equity section after the distribution is made.
(2) Compute the number of shares outstanding after the distribution is made.
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