FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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### Required Information

**[The following information applies to the questions displayed below.]**

On June 30, Sharper Corporation’s stockholders’ equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend.

| Description                                        | Amount     |
|----------------------------------------------------|------------|
| Common stock—$10 par value, 120,000 shares authorized, 82,000 shares issued and outstanding | $820,000   |
| Paid-in capital in excess of par value, common stock | $360,000   |
| Retained earnings                                  | $740,000   |
| **Total stockholders’ equity**                     | **$1,920,000** |

### Required:

1. **Prepare the updated stockholders’ equity section after the distribution is made.**
2. **Compute the number of shares outstanding after the distribution is made.**

### Instructions:

Complete this question by entering your answers in the tabs below.

#### Required 1

Prepare the updated stockholders’ equity section after the distribution is made.

**SHARPER CORPORATION**

- **Stockholders’ Equity Section of the Balance Sheet**
- **June 30**

| Description                     | Amount     |
|---------------------------------|------------|
|                                 |            |
|                                 |            |
|                                 |            |
| **Total stockholders’ equity**  |            |

Complete and proceed to Required 2.
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Transcribed Image Text:### Required Information **[The following information applies to the questions displayed below.]** On June 30, Sharper Corporation’s stockholders’ equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. | Description | Amount | |----------------------------------------------------|------------| | Common stock—$10 par value, 120,000 shares authorized, 82,000 shares issued and outstanding | $820,000 | | Paid-in capital in excess of par value, common stock | $360,000 | | Retained earnings | $740,000 | | **Total stockholders’ equity** | **$1,920,000** | ### Required: 1. **Prepare the updated stockholders’ equity section after the distribution is made.** 2. **Compute the number of shares outstanding after the distribution is made.** ### Instructions: Complete this question by entering your answers in the tabs below. #### Required 1 Prepare the updated stockholders’ equity section after the distribution is made. **SHARPER CORPORATION** - **Stockholders’ Equity Section of the Balance Sheet** - **June 30** | Description | Amount | |---------------------------------|------------| | | | | | | | | | | **Total stockholders’ equity** | | Complete and proceed to Required 2.
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