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 90,000 shares of $7 par common stock and 18,000 shares of $75 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 13,500 shares of the $7 par common stock for $9 per share. January 12 Sold 1,800 shares of the 5 percent preferred stock for $85 per share.. April 5 Sold 18,000 shares of the $7 par common stock for $11 per share. December 31 During the year, earned $309,100 in cash revenue and paid $244,400 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 1.1 March 3 Sold 2,700 shares of the $75 par preferred stock for $95 per share. May 5 Purchased 600 shares of the common stock as treasury stock at $14 per share.. December 31 During the year, earned $252,100 in cash revenues and paid $170,700 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 a Required a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. Journal entry worksheet 1 2 3 4 5 6 7 8 18 Sold 13,500 shares of the $7 par common stock for $9 per share. Record the transaction. Note: Enter debits before credits. Date Jan 05 General Journal Debit Credit Clear entry View general journal Record entry View transaction list Journal entry worksheet > 1 2 3 4 5 6 7 8 18 Sold 1,800 shares of the 5 percent preferred stock for $85 per share. Record the transaction. Note: Enter debits before credits. Date Jan 12 General Journal Debit Credit Record entry Clear entry View general journal Sc Mait View transaction list Journal entry worksheet < 1 2 4 5 6 7 8 18 Sold 18,000 shares of the $7 par common stock for $11 per share. Record the transaction. Note: Enter debits before credits. Date Apr 05 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 2 3 5 6 7 8 18 During the year, earned $309,100 in cash revenue. Record the transaction. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal