Sharper corporation common stock is priced

Assignment Help Accounting Basics
Reference no: EM13899422

On June 30, 2013, Sharper Corporation's common stock is priced at $ 62 per share before any stock dividend or split, and the stockholders'  equity section of its balance sheet appears as follows.

Common stock $ 10 par value, 120,000 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

1. Assume that the company declares and immediately distributes a 50% 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? 
2. Assume that the company implements a 3 for 2 stock split instead of the stock dividend in part 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 stockholder's  equity? 
c. How many shares are outstanding? 
3. Explain the difference, if any, to a stockholder from receiving new shares distributed under a large stock dividend versus a stock split.

Reference no: EM13899422

Ecker company reports

Ecker Company reports $ 2,700,000 of net income for 2013 and declares $ 388,020 of cash dividends on its preferred stock for 2013. At the end of 2013, the company had 678,000

Kelley company reports

Kelley Company reports $ 960,000 of net income for 2013 and declares $ 120,000 of cash dividends on its preferred stock for 2013. At the end of 2013, the company had 400,000 w

Which stock might an analyst likely investigate

Compute the price earnings ratio for each of these four separate companies. Which stock might an analyst likely investigate as being potentially undervalued by the market?Expl

Kinkaid co. is incorporated at the beginning of this year

Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders equity during its fi

Raphael corporations common stock is currently selling

Raphael Corporations common stock is currently selling on a stock exchange at $ 85 per share, and its current balance sheet shows the following stockholders equity section:

The following journal entries impacted its stockholders

Weiss Company is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders equity during its

Differences in the number of people from each race

Higher educational levels have been linked to higher salaries, lower poverty, and even more likelihood of getting married -  Discuss the differences in the number of people f

The equity sections from hovo corporations

The equity sections from Hovo Corporations 2013 and 2014 balance sheets follow.Stockholders Equity (December 31, 2013) Common stock,$ 20 par value, 30,000 shares authorized,

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd