Help 12 Part 1 of 2 25 points Bogu Required information 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 93,000 shares of $4 par common stock and 21,000 shares of $100 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation Year 1 Jan. 5 sold 13.990 shares of the 54 par common stock for 56 per share. 12 Sold 2,100 shares of the 7 percent preferred stock for $110 per share Apr. 5 sold 18,600 shares of the 54 par common stock for $8 per share. Dec. During the year, earned 5302,800 in cash revenge and paid $237,100 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 ot record on January 10, Year 2. Year 2 Teb. 15 Pald the cash dividend declared on December 31, Year 1. Mar. Sold 3, 150 shares of the $100 par preferred stock for $120 per share. May 5 Purchased 450 shares of the common stock as treasury stock at se per share. Dec.31 During the year, earned $240,100 in cash revenues and paid $174.200 for cash operating expenses 01 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the con stock Reference Problem 11-26A (Algo) Part a Problem 11-26A (Algo) Part a Required a. Organize the transaction data in accounts under an accounting equation (Enter any decreases to account balances with a minus sign. Not all cells require input) SUN CORPORATION Accounting Equation Stockholders' Equity Assets Liabilities Event No. Dividends Payable Preferred Stock Cash Common Stock + Pald-in Capital In Excess of Par- Preferro Stock Pald-in Capital in Excess of Par- Common Stock Treasury Stock Year 1 Jan 5 Jan 12 Apr.s Dec 31 Dec 31 Dec.31 ++++++ Il +1... 11 + + 0 0 0+ 0 0 Bal Year 2 Feb 15 Mar 3 Mays . CH Required information Assets Liabilities Accounting Equation Stockholders' Equity Event No. Cash Dividends Payable Preferred Stock Common Stock Paid-in Capital in Excess of Par- Preferred Stock Pald-In Capital in Excess of Par- Common Stock Treasury Stock Retal Earn + + Year 1 Jan 5 Jan. 12 Apr 5 Dec 31 Dec 31 Dec 31 Bal + + + + + + + + + +++ + + + + + + IIIIIII ++ . + 0 0 0 0 : . 0 + Year 2 Feb 15 Mar 3 May 5 Dec 31 Dec 31 Dec 31 ... + +++ + + + . Bal 0 0 0 0+ Check my work Accounting Equation Stockholders' Equity Preferred Stock Common Stock Pald-in Capital in Excess of Par Preferred Stock Paid-in Capital in Excess of Par Common Stock Treasury Stock Retained Earnings Account Titles for Retained Earnings + . + . Dividends Operating expenses Service revenue + + 0 0 0 + 0+ + + + O 0 + 0 0 + 0+
