Sun Corporation received a charter that authorized the issuance of 118,000 shares of $7 par
common stock and 20,000 shares of $100 par, 7 percent cumulative preferred stock. Sun
Corporation completed the following transactions during its first two years of operation: Year 1
Jan. 5 sold 17,700 shares of the $7 par common stock for $9 per share. 12 sold 2,000 shares of
the 7 percent preferred stoek for $110 per share. Apr. 5 sold 23,600 shares of the $7 par comnon
stoek for $11 per share. Dec. 31 During the year, earned $303 , 600 in cash revenue and paid
$235 , 200 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares
of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record
on January 10 , Year 2 . Year 2 Feb.15 Paid the cash dividend declared on December 31, Year 1.
Mar. 3 sold 3,000 ahares of the $100 par preferred stock for $120 per share. May 5 Purchased
600 shares of the common stoek as treasury stock, at $14 per share. Dec.31 During the year,
earned $251 , 200 in cash revenues and paid $170 , 500 for cash operating expenses. 31 Declared
the annual dividend on the proferred stoek and a $0.50 per share dividend on the common stock.
Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare
the stockholders' equity section of the balance sheet at December 31, Year 1 . c. Prepare the
balance sheet at December 31, Year 2. Complete this question by entering your answers in the
tabs below..
Sun Corporation received a charter that authorized the issuance of 118.pdf
1. Sun Corporation received a charter that authorized the issuance of 118,000 shares of $7 par
common stock and 20,000 shares of $100 par, 7 percent cumulative preferred stock. Sun
Corporation completed the following transactions during its first two years of operation: Year 1
Jan. 5 sold 17,700 shares of the $7 par common stock for $9 per share. 12 sold 2,000 shares of
the 7 percent preferred stoek for $110 per share. Apr. 5 sold 23,600 shares of the $7 par comnon
stoek for $11 per share. Dec. 31 During the year, earned $303 , 600 in cash revenue and paid
$235 , 200 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares
of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record
on January 10 , Year 2 . Year 2 Feb.15 Paid the cash dividend declared on December 31, Year 1.
Mar. 3 sold 3,000 ahares of the $100 par preferred stock for $120 per share. May 5 Purchased
600 shares of the common stoek as treasury stock, at $14 per share. Dec.31 During the year,
earned $251 , 200 in cash revenues and paid $170 , 500 for cash operating expenses. 31 Declared
the annual dividend on the proferred stoek and a $0.50 per share dividend on the common stock.
Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare
the stockholders' equity section of the balance sheet at December 31, Year 1 . c. Prepare the
balance sheet at December 31, Year 2. Complete this question by entering your answers in the
tabs below.
