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 sharen of the $10 par common stock for $15 per share. Jonuary 12 sold 1,000 shares of the 5 percent preferred stock for $55 per share. Apri1 5 sold 30,000 shares of the $10 par common stock 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 Wi11 be paid on Yebruary 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 Pebruary Poid the cash dividend declared on Decenber 31, Year 1. March 3 told 15,000 shares of they $50 par preterred atock for $53 per ahare. Moy 5 Purchased 900 shares of the comon atoek an treasury atoek at $24 per ahare. December During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses. Decesber Declared the annusi dividend on the preferred stoek and a $0.50 per ahare dividend on the common 31 ntock. Decenber cloned revenue, expense, and dividend accounta to the retained earninga account. 31 Complete this question by entering your answers in the tabs below. Prepare journal entries for these transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Sold 6,000 shares of the $10 par common stock for $15 per share. Record the transaction. Sold 1,000 shares of the 5 percent preferred stock for $55 per share. Record the transaction. Sold 30,000 shares of the $10 par common stock for $21 per share. Record the transaction. During the year, earned $150,000 in cash revenue. Record the transaction. During the year, paid $88,000 for cash operating expenses. Record the transaction. Declared the cash dividend on the outstanding shares of 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. Record the transaction. Record the closing entry for service revenue. Record the closing entry for operating expenses. Record the closing entry for dividends. Paid the cash dividend declared on December 31, Year 1. Record the transaction. Sold 15,000 shares of the $50 par preferred stock for 11) Sold 15,000 shares of the $50 par preferred stock for $53 per share. Record the transaction. Purchased 900 shares of the common stock as treasury stock at $24 per share. Record the transaction. During the year, earned $210,000 in cash revenue. Record the transaction. During the year, paid $98,000 for cash operating expenses. Record the transaction. 15) Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. Record the transaction. During the year, earned $210,000 in cash revenue. Record the transaction. During the year, paid $98,000 for cash operating expenses. Record the transaction. Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. Record the transaction. Record the closing entry for revenue accounts. Record the closing entry for operating expenses. Record the closing entry for dividends. 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 sharen of the $10 par common stock for $15 per share. Jonuary 12 sold 1,000 shares of the 5 percent preferred stock for $55 per share. Apri1 5 sold 30,000 shares of the $10 par common stock 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 Wi11 be paid on Yebruary 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 Pebruary Poid the cash dividend declared on Decenber 31, Year 1. March 3 told 15,000 shares of they $50 par preterred atock for $53 per ahare. Moy 5 Purchased 900 shares of the comon atoek an treasury atoek at $24 per ahare. December During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses. Decesber Declared the annusi dividend on the preferred stoek and a $0.50 per ahare dividend on the common 31 ntock. Decenber cloned revenue, expense, and dividend accounta to the retained earninga account. 31 Complete this question by entering your answers in the tabs below. Prepare journal entries for these transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Sold 6,000 shares of the $10 par common stock for $15 per share. Record the transaction. Sold 1,000 shares of the 5 percent preferred stock for $55 per share. Record the transaction. Sold 30,000 shares of the $10 par common stock for $21 per share. Record the transaction. During the year, earned $150,000 in cash revenue. Record the transaction. During the year, paid $88,000 for cash operating expenses. Record the transaction. Declared the cash dividend on the outstanding shares of 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. Record the transaction. Record the closing entry for service revenue. Record the closing entry for operating expenses. Record the closing entry for dividends. Paid the cash dividend declared on December 31, Year 1. Record the transaction. Sold 15,000 shares of the $50 par preferred stock for 11) Sold 15,000 shares of the $50 par preferred stock for $53 per share. Record the transaction. Purchased 900 shares of the common stock as treasury stock at $24 per share. Record the transaction. During the year, earned $210,000 in cash revenue. Record the transaction. During the year, paid $98,000 for cash operating expenses. Record the transaction. 15) Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. Record the transaction. During the year, earned $210,000 in cash revenue. Record the transaction. During the year, paid $98,000 for cash operating expenses. Record the transaction. Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. Record the transaction. Record the closing entry for revenue accounts. Record the closing entry for operating expenses. Record the closing entry for dividends