1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
salantis [7]
2 years ago
6

Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. Required: (1) Prepare the updated stock

holders' equity section after the split. (2) Compute the number of shares outstanding after the split.
Business
1 answer:
Ganezh [65]2 years ago
7 0

Complete Question:

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, 120,000 shares authorized, 72,000 shares issued and outstanding $ 720,000

Paid-in capital in excess of par value, common stock 310,000

Retained earnings 715,000

Total stockholders' equity  $1,745,000

Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. Required: (1) Prepare the updated stockholders' equity section after the split. (2) Compute the number of shares outstanding after the split. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the updated stockholders' equity section after the split.

Answer:

Sharper Corporation

1. SHARPER CORPORATION

Stockholders' Equity Section of the Balance Sheet June 30

Total stockholders' equity

Common stock-$3.33 par value, 360,000 shares authorized,

216,000 shares issued and outstanding                  $ 720,000

Paid-in capital in excess of par value, common stock 310,000

Retained earnings                                                         715,000

Total stockholders' equity                                       $1,745,000

2. The number of shares outstanding after the split is:

= 216,000 shares.

Explanation:

a) Data and Calculations:

Common stock-$10 par value, 120,000 shares authorized,

72,000 shares issued and outstanding                   $ 720,000

Paid-in capital in excess of par value, common stock 310,000

Retained earnings                                                         715,000

Total stockholders' equity                                       $1,745,000

Authorized shares = 360,000 (120,000 * 3)

Outstanding shares = 216,000 (72,000 * 3)

Common stock par value = $3.333 ($10/3)

b) A 3-for-1 stock split means that shareholders will now have 3 shares for each share that they previously held.  Therefore, the outstanding and authorized shares will be multiplied by 3 while the stock price is divided by 3 to arrive at their values after the split.

You might be interested in
Ben is employed as a carpenter and his wife, Marilyn, is a self-employed consultant. Besides Ben’s salary, Ben and Marilyn own a
Alona [7]

Answer:

B. The cost of utilities is deductible for AGI

Explanation:

The entire cost of the utilities would be for AGI deduction assuming no personal use of the condo. The employer portion of Marilyn's self-employment tax would be deductible as well.

Adjusted gross income (AGI) is a measure of income calculated from your gross income and used to determine how much of your income is taxable. It is the starting point for calculating a filer's tax bill in the United States and, among other things, is the basis for many deductions and credits. When filing your taxes online—as about 80% of filers do—the software you use will calculate your AGI for you.

3 0
3 years ago
If you put money into a compound interest account with 7.2% interest rate how many years will it take to double your money?
Firlakuza [10]

Answer:

It would take 2 years

Explanation:

7x2=14 witch is the 7.2% interest rate so it would take two years 2 double your money

4 0
1 year ago
Dividends Paid and Dividends in Arrears The Glendora Company has 200,000 shares of cumulative, five percent, $100 par value pref
Ierofanga [76]

Answer:

Dividend in arrears $ 1,000,000

Total Dividend       $ 2,000,000  

Explanation:

The dividend at 5% of $100 par value is $5 per unit of shares. Recall, each unit of the preference shares has a par value of $100

Dividend calculation = $5 multiplied by the total unit of shares

previous year shares dividend is 5 x 200, 000 unit of shares = $ 1,000,000

This year total dividend payout will be current year of $1,000,000 plus previous year of $1,000,000 = $2,000,000

7 0
3 years ago
Read 2 more answers
Project 1 requires an original investment of $125,000. The project will yield cash flows of $50,000 per year for 10 years. Proje
mario62 [17]

Answer: $126,613

Explanation:

Net Present value of Project A is:

= Present value of $50,000 annuity + Present value of residual value - Initial investment

Present value of $50,000 annuity:

= 50,000 * ( 1 - ( 1 + rate)^-number of periods) / rate

= 50,000 * ( 1 - ( 1 + 12%) ⁻⁸) / 12%

= $248,382

Present value of residual value:

= 8,000 / ( 1 + 12%)⁸

= $3,231

Net present value

= 248,382 + 3,231 - 125,000

= $126,613

6 0
3 years ago
A worksheet contains sales dollars for agents with your company. The values are $1,250, $1,090, $985, $985, $880, $756, $675, $6
ivolga24 [154]

Answer:We use the Large Function. the general formula is  =LARGE(first cell:last cell,3) .Please refer to the explanation section for details

Explanation:

Let us assume

A 1 = $1,250,  A 2 = $1,090, A 3 = $985, A 4 = $985, A 5 = $880, A 6 = $756, A 7 = $675, A 78= $650, and A 9 =$600

Using the Large function on excel to return the third largest value, on the formula bar we have the following formula;

=LARGE(A1:A2,3)

7 0
3 years ago
Other questions:
  • PPG Industries, the Pittsburgh-based manufacturer of paints, coatings, optical products, specialty materials, chemicals, glass,
    5·1 answer
  • Max separated the workers by gender and then asked only the men to work the evening shift from 5 P.M. to closing. This is an exa
    11·1 answer
  • Indentures usually bound indentured servants for periods of from five to seven years. question 3 options:
    12·1 answer
  • The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for custo
    6·1 answer
  • Nevada Boot Co. reported net income of $217,400 for its year ended December 31, 2018. Purchases totaled $152,800. Accounts payab
    8·1 answer
  • rayer Corporation has income from continuing operations of $319,000 for the year ended December 31, 2017. It also has the follow
    6·1 answer
  • The steeper an isoquant is ​(labor measured on the horizontal axis​): A. the greater is the level of output. B. the greater is t
    13·2 answers
  • An economy consists of three workers: Rajiv, Yakov, and Charles. Each works 10 hours a day and can produce two services: mowing
    10·1 answer
  • If one of your other classes has a writing assignment, this would be the perfect opportunity to apply this lesson activity towar
    14·1 answer
  • The following information is available for Felix Company: Net income $300 Decrease in plant and equip. $40 Depreciation expense
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!