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.
Common stock—$10 par value, 52,000 shares issued and outstanding $ 520,000
Paid-in capital in excess of par value, common stock 210,000
Retained earnings 665,000
Total stockholders’ equity $ 1,395,000
Exercise 13-9 (Algo) Stock split LO P2
Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split.
(1) Prepare the updated stockholders' equity section after the split.
(2) Compute the number of shares outstanding after the split.
