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 authorized the issuance of 115,000 shares of $6 par common stock and 19,000 shares of $100 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during Its first two years of operation: Year 1 Jan. 5 Sold 17,250 shares of the $6 par common stock for $8 per share. 12 Sold 1,900 shares of the 4 percent preferred stock for $110 per share. Apr. 5 Sold 23,000 shares of the $6 par common stock for $10 per share. Dec. 31 During the year, earned $318,000 in cash revenue and paid $242,800 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 stockholdera 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. Mar. 3 Sold 2,850 shares of the $100 par preferred stock for $120 per share. May Purchased 500 shares of the conmon stock as treasury stock at $12 per share. Dec. 31 During the year, earned $250,000 in cash revenues and paid $173,000 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a so.25 per share dividend on the common 31 Closed revenue, expense, and dividend accounts to the retained earnings account. stock. Prey 10f 1 Next Problem 11-25A Part a Required a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. Round your intermediate calculations and final answer to the nearest dollar amount. Select "12/31 cl. for all the closing entries.) 1 Sold 17,250 shares of the $6 par common stock for $8 18 ook per share. Int 2 Sold 1,900 shares of the 4 percent preferred stock for $110 per share. ences 3 Sold 23,000 shares of the $6 par common stock for 310 per share. 4 Record cash revenue earned. 5 Record payment for operating expenses. 6 Declared the cash dividend on the outstanding shares of Credit preferred stock for Year 1. The dividend will be paid on Note:fournal entry has been entered 6 Declared the cash dividend on the outstanding shares of 18 preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. 7 Record the closing entry for service revenue. 8 Record the closing entry for operating expenses. 9 Record the closing entry for dividends. 10 Paid the cash dividend declared on December 31, Year 1. 11 Sold 2,850 shares of the $100 par preferred stock for Credit $120 per share. 12 Purchased 500 shares of the common stock as treasury1 stock at $12 per share. 13 Record cash revenue earned. 14 Record payment for operating expenses. 15 Declared the annual dividend on the preferred stock and a $0.25 per share dividend on the common stock. 16 Record the closing entry for revenue accounts 17 Record the closing entry for operating expenses 18 Record the closing entry for dividends. Credit Year 1 Cash Dividends Payable Year 1 Year 1 End. Bal. End. Bal. Preferred Stock Retained Earnings Year 1 Year 1 End. Bal End. Bal. Paid-in Capital in Excess of Par-Proeferred Stock Year 1 Common Stock Year 1 End.Ba End. Bal. Dividends Paid-in Capital in Excess of Par-Common Stock Year 1 Year 1 End. Bal End. Bal Service Revenue Year 1 Year 1 End. Bal End. Bal Year 2 Cash Dividends Payable Year 2 Year 2 Beg. Bal. Beg. Bal End. Bal. End. Bal. Retained Earnings Year 2 Year 2 Beg. Bal. Beg. Bal. End. Bal. End. Bal. Paid-in Capital in Excess of Par-Preferred Stock Year 2 Beg. Bal. Common Stock Year 2 Beg. Bal End. Bal. End. Bal. ss of Par-C Year 2 Year 2 Beg. Bal Beg. Bal ok End. Bal End. Bal nt nces Treasury Stock (Common) Service Revenue Year 2 Year 2 Beg. Bal Beg. Bal End. Bal. End. Bal Operating Expenses Year 2 Beg. Bal