On June 30, 2008, Sharper Corporation's common stock is priced at $26.5 (answer attached)

On June 30, 2008, Sharper Corporation's common stock is priced at $26.5 (answer attached)

On June 30, 2008, Sharper Corporation's common stock is priced at $26.5 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows:

Common stock—$5 par value, 65,000 shares authorized, 26,000 shares issued and outstanding $130,000

Paid-in capital in excess of par value, common stock 100,000

Retained earnings 230,000

Total stockholders' equity $460,000

Requirement 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 exists after issuing the new shares:

a. What is the retained earnings balance?

b.What is the amount of total stockholders' equity?

c.How many shares are outstanding?

Requirement 2:

Assume that the company implements a 3-for-2 stock split instead of the stock dividend in requirement 1. Answer these questions about stockholders' equity as it exists after issuing the new shares:

a. What is the retained earnings balance?

b. What is the amount of total stockholders' equity?

c.How many shares are outstanding?