Sharper declares and immediately distributes a 50% dividend.
Common stock-$10 par value, 1220,000 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
Prepare the updated stockholders' equity section after the distribution is made.
Compute the number of shares outstanding after the distribution is made.
Sample Solution