Refer to the information in Exercise 13-6. Assume that instead of distributing a stock dividend, Sharper did

Question:

Refer to the information in Exercise 13-6. Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. After the split, (1) prepare the updated stockholders’ equity section and (2) compute the number of shares outstanding. Hint: A 3-for-1 split means that each old share is replaced with 3 new shares.

Data from Exercise 13-6

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. After the distribution is made,

(1) Prepare the updated stockholders’ equity section

(2) Compute the number of shares outstanding.

Common stock-$10 par value, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Re

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