Required information Problem 11-25A (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 96,000 shares of $6 par common stock and 21,000 shares of $75 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation Year 11 January 5 Sold 14,400 shares of the $6 par connon stock for $8 per share. January 12 Sold 2,100 shares of the 6 percent preferred stock for $85 per share. April 5 Sold 19,200 shares of the $6 por conmon stock for $10 per share. December 31 During the year, earned $310,200 in cash revenue and paid $242,300 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 3,150 shares of the $75 par preferred stock for $95 per share. May 5 Purchased 550 shares of the common stock as treasury stock at $12 per share. December 31 During the year, earned $251,600 in cash revenues and paid $171,400 for cash operating expenses. December 31 Declared the annual dividend on the preferred stock and a 10.50 per share dividend on the common stock. December 31 Closed revenue, expense, and dividend accounts to the retained earnings account. Problem 11-25A (Algo) Part a Required a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts Required information Problem 11-25A (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 96,000 shares of $6 par common stock and 21,000 shares of $75 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 14,400 shares of the $6 par common stock for $8 per share. January 12 Sold 2,100 shares of the 6 percent preferred stock for $85 per share. April 5 Sold 19,200 shares of the $6 par common stock for $10 per share. December 31 During the year, earned $310,200 in cash revenue and paid $242,300 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 Sold 3,150 shares of the $75 par preferred stock for 395 per share. May 5 Purchased 550 shares of the common stock as treasury stock at $12 per share. December 31 During the year, earned $251,600 in cash revenues and paid $171,400 for cash operating expenses. December 31 Declared the annual dividend on the preferred stock and a 50.50 per share dividend on the common stock, December 31 Closed revenue, expense, and dividend accounts to the retained earnings account. Problem 11-25A (Algo) Part b b. Prepare the balance sheets at December 31, Year 1 and Year 2 N Required information Problem 11-25A (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 96,000 shares of $6 par common stock and 21,000 shares of $75 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation Year 1 January 5 Sold 14,400 shares of the $6 par common stock for $6 per share. January 12 Sold 2,100 shares of the 6 percent preferred stock for $85 per share. Apell 5 Sold 19,200 shares of the $6 par common stock for $10 per share.. December 31 During the year, earned $310,200 in cash revenue and paid $242,300 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. Harch 3 Sold 3,150 shares of the $75 par preferred stock for $95 per share. May 5 Purchased 550 shares of the common stock as treasury stock at $12 per share. December 31 During the year, earned $251,600 in cash revenues and paid $171,400 for cash operating expenses. December 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. December 31 Closed revenue, expense, and dividend accounts to the retained earnings account. Problem 11-25A (Algo) Part c c-1. What is the number of common shares outstanding at the end of Year 1? At the end of Year 2? How many common shares had been issued at the end of Year 1? At the end of Year 2? c-2. Is there a difference between issued and outstanding common shares for Year 1? For Year 2?