On June 30, 2016, Sharper Corporation's common stock is priced at $32.00 per share before any...

 

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On June 30, 2016, Sharper Corporation's common stock is priced at $32.00 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows. Common stock-$6 par value, 80,000 shares authorized, 32,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock's par value. Answer these questions about stockholders' equity as it exists after issuing the new shares. a.,b.& c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. Stock Dividend Common stock Paid in capital in excess of par value Total contributed capital Retained Earnings Total Stockholders' Equity Number of common shares outstanding Before Stock Dividend $ $ $192,000 100,000 292,000 $584,000 192,000 100,000 292,000 292,000 584,000 Impact of Stock Dividend 0 After Stock Dividend 100,000 100,000 0 $ 100,000 On June 30, 2016, Sharper Corporation's common stock is priced at $32.00 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows. Common stock-$6 par value, 80,000 shares authorized, 32,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock's par value. Answer these questions about stockholders' equity as it exists after issuing the new shares. a.,b.& c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. Stock Dividend Common stock Paid in capital in excess of par value Total contributed capital Retained Earnings Total Stockholders' Equity Number of common shares outstanding Before Stock Dividend $ $ $192,000 100,000 292,000 $584,000 192,000 100,000 292,000 292,000 584,000 Impact of Stock Dividend 0 After Stock Dividend 100,000 100,000 0 $ 100,000

Answer rating: 100% (QA)

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