12 ! Part 1 of 2 4.28 points eBook Required information Problem 11-26A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 11-3, 11-6 [The following information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 107,000 shares of $7 par common stock and 22,000 shares of $125 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 Print References Jan. 5 Sold 16,050 shares of the $7 par common stock for $9 per share. 12 Sold 2,200 shares of the 7 percent preferred stock for $135 per share. Apr. 5 Sold 21,400 shares of the $7 par common stock for $11 per share. Dec. 31 During the year, earned $305,100 in cash revenue and paid $235,700 for cash operating expenses. Year 2 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. Feb.15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,300 shares of the $125 par preferred stock for $145 per share. May. 5 Purchased 600 shares of the common stock as treasury stock at $14 per share. Dec. 31 During the year, earned $254,300 in cash revenues and paid $170,800 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock.