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The following information applies to the questions displayed below.) On June 30, Sharper Corporations stockholders equity s
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1. Sharper Corporation

Stockholders' Equity section of the balance sheet

June 30.

Common stock- $10 par value, 120,000 shares authorized 90,000 shares issued and outstanding $900,000
paid in capital in excess of par value, common stock 250,000
retained earnings (685,000-300,000) 385,000
Total stock holder's equity $1,535,000

working:

60,000 share are already outstanding

par value per share = $600,000 value / 60,000 shares outstanding

=>$10 per share.

50% stock dividend means, number of new shares to be issued

=>60,000 shares * 50%

=>30,000 shares.

value of these 30,000 shares =30,000+$10

=>$300,000.

total share now = 60,000+30,000=>90,000

new value shares issued and outstanding

=>90,000 shares*$10 per share

=>$900,000..

new retained earnings = 685,000 existing retained earnings - 300,000 value of new shares

=>$385,000.

2 nd part:

number of shares outstanding after distribution is made (60,000 + 30,000) 90,000 shares
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