Required information

Problem $11-25$A $($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 $91,000$ shares of $$6$ par common stock and $19,000$

shares of $$100$ par, $6$ percent cumulative preferred stock. Sun Corporation completed the following transactions during its

first two years of operation.

Year $1$

January $5$ Sold $13,650$ shares of the $$6$ par common stock for $$8$ per share.

January $12$ Sold $1,900$ shares of the $6$ percent preferred stock for $$110$ per share.

April $5$ Sold $18,200$ shares of the $$6$ par common stock for $$10$ per share.

December $31$ During the year, earned $$303,700$ in cash revenue and paid $$244,600$ for cash operating expenses.

December $31$ 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 $2.$

December $31$ Closed the revenue, expense, and dividend accounts to the retained earnings account.

Year $2$

February $15$ Paid the cash dividend declared on December $31,$ Year $1.$

March $3$ Sold $2,850$ shares of the $$100$ par preferred stock for $$120$ per share.

May $5$ Purchased $550$ shares of the common stock as treasury stock at $$12$ per share.

December $31$ During the year, earned $$247,100$ in cash revenues and paid $$173,800$ for cash operating expenses.

December $31$ Declared the annual dividend on the preferred stock and a $$0\mathrm{.}50$ per share dividend on the common

stock.

December $31$ Closed revenue, expense, and dividend accounts to the retained earnings account.

Problem $11-25$A $($Algo$)$ Part a