90.2K

Verified Solution

Link Copied!

Required information [The following information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 114,000 shares of $4 par common stock and 22,000 shares of $100 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 January 12 April 5 December 31 December 31 Year 2 Sold 17,100 shares of the $4 par common stock for $6 per share. Sold 2,200 shares of the 7 percent preferred stock for $110 per share. Sold 22,800 shares of the $4 par common stock for $8 per share. During the year, earned $314,000 in cash revenue and paid $236,200 for cash operating expenses. 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. February 15 Paid the cash dividend declared on December 31, Year 1. March 3 May 5 Sold 3,300 shares of the $100 par preferred stock for $120 per share. Purchased 450 shares of the common stock as treasury stock at $8 per share. December 31 During the year, earned $249,700 in cash revenues and paid $179,500 for cash operating December 31 expenses. Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock. Required a. Organize the transaction data in accounts under an accounting equation. Proy

Required information Part 2 of 3 0.68 points eBook Print References \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ SUN CORPORATION } \\ \hline \multicolumn{1}{|c|}{ As of December 31, Year 1 } & \\ \hline Assets & & \\ \hline & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline & & \\ \hline Total liabilities & & \\ \hline Stockholders' equity & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total paid-in capital & & \\ \hline & & \\ \hline & & \\ \hline Total stockholders' equity & & \\ \hline \end{tabular} Required information [The following information applies to the questions displayed below.] Sun Corporation recelved a charter that authorized the issuance of 114,000 shares of $4 par common stock and 22,000 shares of $100 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 17,100 shares of the $4 par common stock for $6 per share. January 12 Sold 2,200 shares of the 7 percent preferred stock for $110 per share. April 5 Sold 22,800 shares of the $4 par common stock for $8 per share. December 31 During the year, earned $314,000 in cash revenue and paid $236,200 for cash operating expenses. December 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February is to stockhotders of record on January 10, Year 2. Year 2 February 15 Paid the cash dividend declared on December 31, Year 1. March 3 Sold 3,300 shares of the $100 par preferred stock for $120 per share. May 5 Purchased 450 shares of the common stock as treasury stock at $8 per share. Decenber 31 During the year, earned $249,700 in cash revenues and paid $179,500 for cash operating December 31 Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock. Required a. Oroanize the transaction data in accounts under an accountina eouation. c-2. Are there any differences between issued and outstanding common shares for Year 1 and Ye Note: Enter any decreases to account balances with a minus sign, Not all cells require input

Answer & Explanation Solved by verified expert

See Answer