D Required information Problem 11-25A 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 89.000 shares of $6 par common stock and 20,000 shares of $100 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 13,350 shares of the $6 par common stock for $8 per share. 12 Sold 2,000 shares of the 5 percent preferred stock for $110 per share. Apr. $6 par 10 . Dec. 31 During the year, earned $385,600 in cash revenue and paid $239,100 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. 31 closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,000 shares of the $100 par preferred stock for $120 per share. . 5 Purchased 550 shares of the common stock as treasury stock at $12 per share. Dec. During the year, earned $246,800 in cash revenues and paid $179, 180 31 31 Declared the annual dividend on the preferred stock and a $0.58 per share dividend on the common stock. 31 Closed revenue, expense, and dividend accounts to the retained earnings account. Problem 11-25A Part 1. What is the number of common shares outstanding at the end of Year 1? At the end of Year 2? How many common thares had been issued at the end of Year 1? At the end of Year 2? (Amounts to be deducted should be indicated with minus sign.) Schedule of Number of Shares of Common Stock Shares Shares Issued Outstanding Year 1 Jan. 5 X Apr. 5 X 0 0 Totals Year 2 May 5 X Totals 0 0 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points SUN CORPORATION Balance Sheet As of December 31, Year 2 Assets Cash $ 0 Total assets Liabilities Dividends payable 0 Total abilities Stockholders' equity Paid-in capital in excess of par- common stock Paid-in capital in excess of par preferred stock Paid-in capital in excess of stated value Preferred stock 0 Total paid-in capital Retained earnings Less: Treasury stock (Common) Total stockholders' equity Total liabilities and stockholders' equity 0 0