Chapter 11 Assignment 5 Part 2 of 3 10 points eBook Print 10 References [The following information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 88,000 shares of $5 par common stock and 18,000 shares of $75 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 January 12 April 5 Sold 13,200 shares of the $5 par common stock for $7 per share. Sold 1,800 shares of the 6 percent preferred stock for $85 per share. Sold 17,600 shares of the $5 par common stock for $9 per share. December 31 During the year, earned $313,800 in cash revenue and paid $240,300 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. Year 2 February 15 Paid the cash dividend declared on December 31, Year 1. March 3 May 5 Sold 2,700 shares of the $75 par preferred stock for $95 per share. Purchased 550 shares of the common stock as treasury stock at $10 per share. December 31 During the year, earned $245,700 in cash revenues and paid $177,200 for cash operating expenses. December 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. a. Prepare the balance sheets at December 31, Year 1 and Year 2. Note: Amounts to be deducted should be indicated with minus sign. Assets SUN CORPORATION Balance Sheet As of December 31, Year 1 Total assets Liabilities Total liabilities Stockholders' equity Total paid-in capital Total stockholders' equity Total liabilities and stockholders' equity 0 $ 0 0 0 0 Assets SUN CORPORATION Balance Sheet As of December 31, Year 2 Total assets Liabilities Total liabilities Stockholders' equity Total paid-in capital Total stockholders' equity Total liabilities and stockholders' equity 0 $ 0 0 0