Required information Problem 11-25A (Static) 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 100,000 shares of $10 par common stock and 50,000 shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 6,000 shares of the $10 par common stock tor $15 per share. January 12 sold 1,000 shares of the 5 percent preferred stock for $55 per share. April 5 sold 30,000 shares of the $10 par common atock for $21 per share. December 31 During the year, earned $150,000 in cash revenue and paid $88,000 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 atockholders of record on January 10 , Year 2 . December 31 Closed the revenue, expense, and dividend accounts to the retalned earnings account. Year 2 February Paid the canh dividend declared on Decenber 31, Year 1. 15 March 3 sold 15,000 shares of the $50 par preferred stoek for 553 per share. May 5 Purchased 900 shares of the conmon stock as treasury stoek at $24 per ahare. December During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses. 31 December Deelared the annual dividend on the preferred ntock and a $0.50 per share dividend on the conmon 31 stook. December closed revenue, expense, and dividend accounts to the retained earnings account. Problem 11-25A (Static) 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? 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? Complete this question by entering your answers in the tabs below. 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? (Amounts to be deducted should be indicated with minus sign.) 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 ? Complete this question by entering your answers in the tabs below. Is there a difference between issued and outstanding common shares for Year 1 ? For Year 2
