Answered step by step
Verified Expert Solution
Question
1 Approved Answer
hi,please help me out, thanks! Urgent!!! Required information WThe following information applies to the questions displayed below] Sun Corporation received a charter that authorized the
hi,please help me out, thanks! Urgent!!!
Required information WThe following information applies to the questions displayed below] Sun Corporation received a charter that authorized the issuance of 94,000 shares of $5 par common stock and 19,000 shares of $125 par, 5 percent cumulative preferred stock, Sun Corporation completed the following transactions during its first two years of operation. Year 1 Jonuary 5 Sold 14,100 shares of the $5 par camon stock for 37 per shore. January 12 Sold 1,900 shares of the 5 percent preferred stock for $135 per share. Apr11 5 sold 18,800 shares of the \$5 por comen stock for $9 per share. December 31 During the year, earned $314,800 in casb revenue and poid $238,1e9 for cash operating expenses. Deceaber 31 Declared the eash dividend on the outstanding shares of preferred stock for Year 1 , The dividend will be pald on February 15 to stockholders of recond on January 10 , Year 2. December 31 closed the revenue, expense, and dividend accounts to the retained earningt account. (3 separate entries) Yeat 2 Pebruary 15 Paid the cash dividend declared on Deceaben 31 , Yean 1. March 3 Sold 2, a50 shares of the $125 par preferred stock for 1145 per share. Hay 5 purchased 600 shares of the compon steck as treasury stock at sio per share. December 31 During the year, earned $253,500 in cash revenues and paid $174,700 for cash operating expenses. December 31 beclared the annual dividend on the preferred stock and a so. 75 per share divibend on the common stock. Decenber 31 Closed revenue, expense, and dividend accounts to the retained earnings account. (3 separate entries) b. Prepare the balance sheets at December 31, Year 1 and Year 2 Prepare the balance sheets at December 31 , Year 1 Prepare the balance sheets at December 31, Year 2. (Amounts to be deducted should be indicated with minus sign.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started