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13 Part 2 of 2 Required information Problem 11-26A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 11-3, 11-6

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13 Part 2 of 2 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 93,000 shares of $4 par common stock and 21,000 shares of $100 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation 25 points . eBook References Year 1 Jan. 5 Sold 13,950 shares of the 54 par common stock for $6 per share. 12 Sold 2, 100 shares of the 7 percent preferred stock for $110 per share. Apr. 5 Sold 18,600 shares of the 54 par common stock for per share. Dec. During the year, earned $302,800 in cash revenue and paid $237,100 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 Yab. 15 Paid the cash dividend declared on December 31, Year 1. Mar. ) Sold 3, 150 shares of the $100 par preferred stock for $120 per share Hay. 5 Purchased 450 shares of the common stock as treasury stock at $8 per share Dec. During the year, earned $240,100 in cash revenues and paid $174,200 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a 50.50 per share dividend on the common stoek Problem 11-26A (Algo) Part c-1. What is the number of common shares outstanding at the end of Year 17 At the end of Year 2? How many common shares had been issued at the end of Year 17 At the end of Year 22 (Amint ihn Problem 11-26A (Algo) Part c-1. What is the number of common shares outstanding at the end of Year 1? At the end of Year 2? How many common shares had been issued at the end of Year 1? At the end of Year 27 (Amounts to be deducted should be indicated with minus sign.) Schedule of Number of Shares of Common Stock Shares Shares Issued Outstanding es Year Apr. 5 0 O Dec. 31 Jan. 12 Jan. 5 0 Problem 11-26A (Algo) Part 6-1. What is the number of common shares outstanding at the end of Year 1? At the end of Year 2? How many common shares had been issued at the end of Year 1? At the end of Year 27 (Amounts to be deducted should be Indicated with minus sign.) Schedule of Number of Shares of Common Stock Shares Shares Issued Outstanding nces May 5 Mar 3 Feb. 15 0 0 Dec. 31 Totals 0 0 ear 1? At the end of Year 2? (Amounts to be eBook Schedule of Number of Shares of Common Stock Shares Shares Issued Outstanding ferences Year 1 Totals 0 0 Year 2 Totals 0 c-2. Are there any differences between issued and outstanding common shares for Year 1 and Year 2? Issued common shares Outstanding common shares 5 Yes No

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