accounting cycies LU $77=S,$ n$-$b

$[$The following informotion opplies to the questions disployed below.$]$

Sun Corporation recelved o charter that outhorized the issuance of $115,000$ shores of $$7$ par common stock and $20,000$

shares of $$100$ por, $6$ percent cumulotive preferred stock. Sun Corporation completed the following transoctions during its

first two years of operation.

Year $1$

January $5$ Sold $17,250$ shares of the $$7$ par common stock for $$9$ per share.

January $1250$ld $2,090$ shares of the $6$ percent preferred stock for $$110$ per share.

April $5$ Sold $23,000$ shares of the $$7$ par common stock for $$11$ per share.

December $31$ During the year, earned $3512,200$ in cash revenue ond poid $3255,600$ for cosh operating expenses.

Decesber $31$ Declared the casi 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 sccounts to the retained earnings sccount.

Year $2$

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

March $3$ Sold $3,000$ shares of the $$100$ par preferred stock for $$120$ per share.

Nay $5$ Purchased SSe shares of the comon stock as treasury stock at $$14$ per share.

December $31$ During the year, earned $$253,300$ in cosh revehues and paid $$171,009$ for cash operating expenses.

December $31$ Declared the annual dividend on the preferred stock and a $$0\mathrm{.}75$ per share dividend on the comon stock.

Decenber $31$ Closed revenue, expense, and dividend sccounts to the retained earnings account.