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.

c1. what is the number common share 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 2?

c2. is there any difference between issued and outstanding common shares for year 1? for year 2?

it seems to me that the picture is clear!

Required information Problem 11-25A (Static) 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 100,000 shares of $10 par common stock and 50,000 shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 sold 6,000 shares of the $10 par comtnon stoek for $15 per share. January 12 sold 1,000 shares of the 5 percent preferred stock for $55 por share. April 5 sold 30,000 shares of the $10 por coamon stock for $21 per share. December 31 During the year, earned $150,000 in cash revenue and paid $88,000 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. Decerber 31 closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 February Paid the cash dividend declared on December 31, Year 1. March 3 sold 15,000 shares of the $50 par preforred atock for $53 per share. May 5 purchased 900 shares of the common stock as treasury stock at $24 per share. December During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses. 31 December Declared the annual dividend on the preferred stook and a $0.50 per share dividend on the common 31 stock. December closed revenue, expense, and dividend accounts to the retained earnings aceount. 31