Required Information 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 90,000 shares of $5 par common stock and 21,000 shares of 575 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 13,500 shares of the $5 par common stock for $7 per share. 12 sold 2,1ee shares of the 7 percent preferred stock for $85 per share. Apr. 5 Sold 18,000 shares of the $5 par common stock for $9 per share. Dec. 31 During the year, earned $382, see in cash revenue and paid $223,488 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend w111 be paid on February 15 to stockholders of record on January 19, 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 3, 150 shares of the $75 par preferred stock for 595 per share. May 5 Purchased see shares of the common stock as treasury stock at $1e per share. Dec. 31 During the year, earned $247,600 in cash revenues and paid $174,3ee for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a se.75 per share dividend on the common stock. 31 Closed revenue, expense, and dividend accounts to the retained earnings account. Journal entry worksheet 1 2 3 5 8 8 7 8 18 Sold 13,500 shares of the $5 par common stock for $7 per share. Note: Enter debits before credits General Journal Debit Credit Date Jan 05 Record entry Clear entry View general Journal Year 1 Caen Dividende Payable Year 1 Year 1 End. Bal. End. Bal Retained Earnings Preferred Stock Year 1 Year 1 End. B End. Bal Common Stock Pald-in Capital in Excess of Par-Preferred Stock Year 1 Year 1 End. Bal End. Bal Dividende Pald-in Capital In Excees of Par-Common stock Year 1 Year 1 End. Bal End. Bal. Service Revenue Operating Expenses Year 1 Year 1 End. Bal End. Bele Year 2 Caen Dividends Payable Year 2 Beg. Bal Year 2 Beg. Bal End. Bal End. Bal Retained Earningo Preferred Stock Year 2 Beg. Bal Year 2 Beg. Bal End. Bal End. Bal Common Stock Year 2 Beg. Bal Pald-in Capital in Excess of Par-Preferred Stock Year 2 Beg. Bal End. Bal End. Bal Dividende Pald-in Capital in Excess of Par-Common stock Year 2 Bey, Bal Year 2 Beg. Bal End. Bal End. Bal. Treasury stock (Common) Service Revenue Year 2 Beg. Bal Year 2 Beg. Bal End. Best End. Bal. Operating Expenses Year 2 Beg. Bal End. Bal