Ilecuciition.com/fiow/connect.htm plem for Points G Saved Help Save & Exit Submit Check my work 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 authorlzed the issuance of 107,000 shares of $5 par common stock and 21,000 shares of $100 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 5 Sold 16,050 shares of the $5 par common stock for $7 per share. 12 Sold 2,100 shares of the 5 percent preferred atock for $110 per ahare. s Sold 21,400 shares of the $5 par common stoek for $9 per share. Jan. Apr. Dec. 31 During the year, earned $315,800 in cash revenue and paid $242,400 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend vil11 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. 3 Sold 3,150 ahares of the $100 par preferred atock for $120 per share. 5 Purchased 500 shares of the comnon atock as treasury stock at $10 per share. Mar. May Dec. 31 During the year, earned $247,900 in canh revenues and paid $177,800 for eash operating expenses Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the conmon 31 stock. 31 Closed revenue, expense, and dividend accounts to the retained earnings account. 1 of 1 Next Prev 30 MacBook Air Saved Help Save & Exit Submit Check my work Required information Hequirea a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. (If no emntry is required for a transaction/event, select "No journal entry required" in the first account field. Round your Intermediate calculations and final answer to the nearest dollar amount. Select "12/31 el." for all the closing entries.) View transaction list Journal entry worksheet 2 3 4 5 6 7 18 Sold 16,050 shares of the $5 par common stock for $7 per share. Note: Enter debits before credits. Debit Credit Date General Journal 1 of 1 Next Prev JAN 30 MacBook Air Seved Hel 1 Required information Year 1 ints Cash Dividends Payable Year 1 Year 1 eBook Print teferences End. Bal. End. Bal. Retained Earnings Preferred Stock Year 1 Year 1 1 of 1 30 TOr Poimts Saved Required information End. Bal. End. Bal. Retained Earnings Preferred Stock Year 1 Year 1 End. Bal. End. Bal. es Paid-in Capital in Excess of Par-Preferred Stock Common Stock Year 1 Year 1 End. Bal, End. Bal. Dividends Paid-in Capital in Excess of Par- mmon Stock Next Prev 1 of 1 Required information Paid-in Capltal in Excess of Par-Common Stock Dividends Year 1 Year 1 End. Bal. End. Bal. Service Revenue Operating Expenses Year 1 Year 1 End. Bal. End. Bal. Year 2 Dividends Payable Cash Year 2 Year 2 Don Dal Next 1 of 1 Prev JUN 30 Saved Help Save & E Che Required information Cash Dividends Payable Year 2 Year 2 Beg. Bal. Beg. Bal. End. Bal. End. Bal. Retained Earnings Preferred Stock Year 2 Year 2 Beg. Bal. Beg. Bal. End. Bal. End. Bal. 1 of 1 Next Prev W 30 MacB lilL 1 Required information Retained Earnings Preferred Stock Year 2 Year 2 Beg. Bal. Beg. Bal. ook Int End. Bal. End. Bal. ences Common Stock Paid-in Capital in Excess of Par-Preferred Stock Year 2 Year 2 Beg. Bal. Beg. Bal. End. Bal End. Bal. Paid-in Capital in Excess of Par-Common Stock Dividends Vear 2 Vear 2 Prev 1 of 1 Next 5 JUN 30 Seved Help Save & Required information Pald-in Capital in Excess of Par-Common Stock Dividends Year 2 Year 2 Beg. Bal. Beg. Bal. End. Bal. End. Bal. ces Treasury Stock (Common) Service Revenue Year 2 Year 2 Beg. Bal. Beg. Bal. End. Bal. End. Bal. Operating Expenses Year 2 Next 1 of 1
