On June 30, 2015, Sharper Corporation\'s common stock is priced at $31.00 per sh

Question

On June 30, 2015, Sharper Corporation's common stock is priced at $31.00 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows. Assume that the company implements a 2-for-1 stock split instead of the stock dividend in part 1. Answer these questions about stockholders' equity as it exists after issuing the new shares. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares.

Explanation / Answer

BEFORE STOCK SPLIT IMPACT OF STOCK SPLIT AFTER STOCK SPLIT COMMON STOCK($) 1,52,000 76,000 SHARES OF $2 PAR VALUE 1,52,000 PAID IN CAPITAL IN EXCESS OF PAR VALUE($) 1,00,000 1,00,000 1,00,000 TOTAL CONTRIBUTED ($)CAPITAL 2,52,000 2,52,000 RETAINED EARNINGS($) 2,52,000 2,52,000 TOTAL STOCKHOLDER'S EQUITY($) 5,04,000 5,04,000 NUMBER OF COMMON SHARES OUTSTANDING 38,000 76,000

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.