On June 30, 2016, Sharper Corporation\'s common stock is priced at S32.50 per sh

Question

On June 30, 2016, Sharper Corporation's common stock is priced at S32.50 per share before any stok dividend or split, and the stockholders' equity section of its balance sheet appears as follows. Common stock $10 par value, 60,000 shares authorized, 24,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $240,000 100,000 340,000 $680,000 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 Before Stock Dividend Impact of Stock After 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

Complete table :

Before stock dividend Impact of stock dividend After stock dividend Common stock 240000 240000 480000 Paid in capital in excess of par value 100000 0 100000 Total contributed capital 340000 240000 580000 Retained earnings 340000 -240000 100000 Total stockholder's equity 680000 0 680000 No of common share outstanding 24000 24000 48000

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