Answer:
Find below the equity section of the balance sheet
Number of shares outstanding is now 105,000
Explanation:
The equity section of the balance is an excerpt of the entire balance sheet containing the worth of equity stockholders' investment in the business which comprises of the common stock,paid in capital in excess of par as well as the retained earnings.
Equity section of Sharper Corporation balance sheet :
Common stock-$10 par value,120,000 authorized,105,000 issued and outstanding ($700,000+$350,000) $1,050,000
Paid in capital in excess of par $300,000
Retained earnings ($710,000-$350,000) $360,000
Total stockholders' equity $1,710,000
The stock dividend of 50% means that 35,000 more shares(50%*70,000 shares are given to shareholders for free,funded by retained earnings by debiting retained earnings with $350,000 (35,000*$10) and crediting same to common stock
total number of shares outstanding=70,000+35000=105000
