Problems 1 and 2 please :) 1. 2. On June 30, 2017, Sharper Corporation\'s common

Question

Problems 1 and 2 please :)

1.

2.

On June 30, 2017, 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. Common stock-$8 par value, 95,000 shares authorized, 38,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 304,000 100,000 404,000 $ 808,000 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 existsarssuing the new shares. a.,b.& c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares 2. 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 a.,b.& c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares.

Explanation / Answer

2

Stock Dividend Before stock dividend Impact of stock Dividend After Stock dividend Common Stock 304000 304000 608000 Paid in Capital inexcess of par value 100000 100000 Total Contributed capital 404000 304000 708000 Retained earnings 404000 -304000 100000 Total Stockholder's Equity 808000 0 808000 Number of common shares Outstanding 38000 38000 76000

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