I am trying to figure out how to do a stock split instead of a stock dividend, and I'm have trouble on how to approach it. My question is wanting a 3-for-2 split and I've looked through my book several times on this subject and it never actually says how to solve it.

This is what I've been able to answer so far and the question.

On June 30, 2008, Sharper Corporation's common stock is priced at $28 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows:

Common stock—$7 par value, 70,000 shares authorized, 28,000 shares issued and outstanding $196,000


Paid-in capital in excess of par value, common stock 100,000


Retained earnings 296,000


Total stockholders' equity 592,000

Requirement 1:

Assume that the company declares and immediately distributes a 100% 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 after dividends? 100000

b.What is the amount of total stockholders' equity? 592000

c.How many shares are outstanding after dividends? 56000


Requirement 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

Retained earnings after the stock split?

Total stockholder's equity?

Outstanding shares after the split?