Required information [The following information applies to the questions displayed below.] 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, 50,000 shares issued and outstanding $ 500,000 Paid-in capital in excess of par value, common stock Retained earnings. 200,000 660,000 Total stockholders' equity $ 1,360,000 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 1 Required 2 Prepare the updated stockholders' equity section after the split. SHARPER CORPORATION Stockholders' Equity Section of the Balance Sheet June 30
Required information [The following information applies to the questions displayed below.] 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, 50,000 shares issued and outstanding $ 500,000 Paid-in capital in excess of par value, common stock Retained earnings. 200,000 660,000 Total stockholders' equity $ 1,360,000 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 1 Required 2 Prepare the updated stockholders' equity section after the split. SHARPER CORPORATION Stockholders' Equity Section of the Balance Sheet June 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 13
![### Required Information
#### [The following information applies to the questions displayed below.]
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.
**Current Stockholders' Equity:**
* Common stock—$10 par value, 50,000 shares issued and outstanding: $500,000
* Paid-in capital in excess of par value, common stock: $200,000
* Retained earnings: $660,000
**Total Stockholders' Equity: $1,360,000**
#### Scenario:
Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split.
### Task:
1. **Prepare the updated stockholders' equity section after the split.**
2. **Compute the number of shares outstanding after the split.**
### Instructions:
Complete this question by entering your answers in the tabs below.
### Sharper Corporation
**Stockholders' Equity Section of the Balance Sheet**
**June 30**
[Placeholder for user input to complete the balance sheet adjustment post-stock split.]
---
This section of the educational website explains the impact of stock dividends and stock splits on the stockholders' equity section of a corporation’s balance sheet. The example uses Sharper Corporation to illustrate these concepts, showing the initial stockholders' equity and guiding users to adjust this section based on a hypothetical 3-for-1 stock split scenario.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F950ccb0b-88f0-424e-a789-46ed3bd2a086%2F187e1e1c-bea6-4105-a513-2a99e077f27c%2Fl9ifnlf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Required Information
#### [The following information applies to the questions displayed below.]
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.
**Current Stockholders' Equity:**
* Common stock—$10 par value, 50,000 shares issued and outstanding: $500,000
* Paid-in capital in excess of par value, common stock: $200,000
* Retained earnings: $660,000
**Total Stockholders' Equity: $1,360,000**
#### Scenario:
Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split.
### Task:
1. **Prepare the updated stockholders' equity section after the split.**
2. **Compute the number of shares outstanding after the split.**
### Instructions:
Complete this question by entering your answers in the tabs below.
### Sharper Corporation
**Stockholders' Equity Section of the Balance Sheet**
**June 30**
[Placeholder for user input to complete the balance sheet adjustment post-stock split.]
---
This section of the educational website explains the impact of stock dividends and stock splits on the stockholders' equity section of a corporation’s balance sheet. The example uses Sharper Corporation to illustrate these concepts, showing the initial stockholders' equity and guiding users to adjust this section based on a hypothetical 3-for-1 stock split scenario.
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