formation 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 81,000 shares of $4 par common stock and 18.000 shares of $125 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation Year 1 Jan. 5 Sold 12,150 shares of the $4 par common stock for $6 per share. 12 Sold 1,800 shares of the 6 percent preferred stock for $135 per share. Apr. 5 Sold 16,200 shares of the $4 par common stock for $8 per share. Dec. 31 During the year, earned $305,300 in cash revenue and paid $235,500 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 18, Year 2. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 2,700 shares of the $125 par preferred stock for $145 per share. May. 5 Purchased 450 shares of the common stock as treasury stock at $8 per share. Dec.31 During the year, earned $247,500 in cash revenues and paid $173, 100 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.25 per share dividend on the common stock. Required information SUNCORPORATION Divided Pab Preted Stock Com Finca PC Exceto Preferred Stod Pada Cape Excess Coman Shock Year 1 --- . . . . Jan 12 AD Dec 31 Dec 30 Dec 31 Ba O O. Year 2 Feb 15 M May 5 Dec 31 De 1 boot Bal . . . . . . 0 0