nester HC ! 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 86,000 shares of $4 par common stock and 20,000 shares of $75 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 Jan. 5 Sold 12,900 shares of the $4 par common stock for $6 per share. 12 Sold 2,000 shares of the 6 percent preferred stock for $85 per share. Apr. 5 sold. 17, 200 shares of the $4 par common stock for $8 per share. Dec. 31 During the year, earded $315,500 in cash revenue and paid $241,700 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. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,000 shares of the $75 par preferred stock for $95 per share. May. 5 Purchased 600 shares of the common stock as treasury stock at $8 per share. Dec.31 During the year, earned $248,000 in cash revenues and paid $178,800 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock. Problem 11-26A (Algo) Part a Required Prev 16 17 of 19 Neyt Check my work Required information Accourung Equation Stockholders' Equity Assets Liabilities Event No. Cash Dividends Payable Preferred Stock +- Common Stock + Paid-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 Year 1 Jan 5 + + + + + Jan. 12 + + + + + 111 Apr.5 + + + + + Dec 31 + + + + + Dec. 31 + + + + + Dec 31 + + + + Bal. 0 0 + 0 0 + 0 + 0 0 + Year 2 Feb. 15 + + + + + + Mar 3 + + + + May 5 + + + + + Dec. 31 + + + + + Dec 31 + + + + + Dec 31 + + + + + n Ral 4 n n 1 Prev 16 17 of 18 Next > ca () 8:56