Required information Problem 11-25A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 113,116 [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 Sotd 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. Aprit 5 Sold 18,000 shares of the 57 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 is 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 dectared on Decenber 31, Year 1. Mareh 3 Sold 2,700 shares of the $75 par preferred stock for $95 per share. May 5 Purchased 600 shares of the conmon stock as treasury stock at $14 per share. Decenber 31 During the year, earned $252,100 in cash revenues and paid $170,700 for cash operating expenses. Decenber 31 Dectared the annual dividend on the preferred stock and a so. 50 per share dividend on the common stock. Deceaber 31 Closed revenue, expense, and dividend accounts to the retained earnings account. Problem 11-25A (Algo) Part b 1 Required information \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Balance Sheet } \\ \hline Assets of December 31, Year 1 & \\ \hline & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline & & \\ \hline & & \\ \hline Total liabilities & & \\ \hline Stockholders' equity & & \\ \hline & & \\ \hline & & \\ \hline Total paid-in capital & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} (1) Required information