On June 30, 2015, Sharper Corporation\'s common stock is priced at $35.00 per sh

Question

On June 30, 2015, Sharper Corporation's common stock is priced at $35.00 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, 85,000 shares authorized, 34,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 204,000 100,000 304,000 Total stockholders' equity $ 608,000 I. 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 Impact of Stock Dividend After Stock Before Stock Dividend Stock Dividend Dividend Common stock Paid in capital in excess of par value Total contributed capital Retained Earnings Total Stockholders' Equity Number of common shares outstanding

Explanation / Answer

Answer:1

Answer:2

Stock Dividend Before Stock Dividend Impact of stock Dividend After stock dividend Common stock 204000 204000 408000 Paid in capital in excess of Par value 100000 100000 Total contributed capita 304000 204000 508000 Retained earnings 304000 -204000 100000 Total stockholder equity 608000 0 608000 Number of Common shares outstanding 34000 34000 68000

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