Sun Corporation received a charter that authorized the issuance of $93,000$ shares of $$4$ par common stock and $21,000$ shares of $$125$ par, $4$ percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation.

Year $1$

January $5$ Sold $13,950$ shares of the $$4$ par common stock for $$6$ per share.

January $12$ Sold $2,100$ shares of the $4$ percent preferred stock for $$135$ per share.

April $5$ Sold $18,600$ shares of the $$4$ par common stock for $$8$ per share.

December $31$ During the year, earned $$311,500$ in cash revenue and paid $$243,600$ 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 $15$ to stockholders of record on January $10,$ Year $2.$

December $31$ Closed the revenue, expense, and dividend accounts to the retained earnings account.

Year $2$

February $15$ Paid the cash dividend declared on December $31,$ Year $1.$

March $3$ Sold $3,150$ shares of the $$125$ par preferred stock for $$145$ per share.

May $5$ Purchased $450$ shares of the common stock as treasury stock at $$8$ per share.

December $31$ During the year, earned $$249,700$ in cash revenues and paid $$178,600$ for cash operating expenses.

December $31$ Declared the annual dividend on the preferred stock and a $$0\mathrm{.}25$ per share dividend on the common stock.

December $31$ Closed revenue, expense, and dividend accounts to the retained earnings account.

Problem $11-25$A $($Algo$)$ Part a

Required

a$.$ Prepare journal entries for these transactions for Year $1$ and Year $2$ and post them to T$-$accounts.

b$.$ Prepare the balance sheets at December $31,$ Year $1$ and Year $2.$