(1) On June 30, Sharper Corporation's stockholders equity section of its dividend or split. Sharper declares and immediately distributes a 50% dividend.
Common stock-$10 par value, 1220,000 shares authorized, 50,000 shares issued and outstanding-$500,000
Paid in capital in excess of par value, common stock - $200,000
Retained earnings - $660,000
Total stockholders' equity $1,360,000
Prepare the updated stockholders' equity section after the distribution is made.
Compute the number of shares outstanding after the distribution is made.
___________________________________________________________________________________________________
(2) Th stockholders equity of TVX Company at the beginning of the day on Feb 5 follows:
Common stock - $10 par value, 150,000 shares authorized 60,000 shares issued and outstanding $600,000
Paid in capital in excess o pa value, common stock $425,000
Retained earnings $550,000
Total stockholders equity $1,575,000
On February 5, the directors declare a 20% stock dividend distributable on February 28 to the Feb 15 stockholder record. The stock's market value is $40 per share on February 5 before the stock dividend.
Prepare the stockholders equity section after the stock dividend is distributed.