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 stoek for $15 per ahare. January 12 sold 1,000 shares of the 5 percent preterred ntook for 555 per whare. April s sold 30,000 ahares of the $10 par comson atoek for $21 per share. becenber 31 During the year, earned $150,000 in cash revenue and paid $88,000 for cash operating expenses. December 31 Deelared the cash dividend on the outstanding whares of preferred atook 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 accountn to the retained earaings account. Year 2 February Paid the cosh dividend declared on Deceaber 31, Year 1. 15 March 3 Sold 15,000 shares of the $50 par preferred stock for $53 per share. May $ purchased 900 ahares of the cotmon stook an treasury stock at $24 per share. December buring the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses. 31 Decenber Deelared the annual dividend on the preferred stook and a $0.50 per mhare dividend on the canmon 31 stock. Becenber cloted revenue, expenne, and dividend accounts to the retained earoings account. 31 Apri1 5 Sold 30,000 sharen of the $10 par cormon stock for \$21 per share. Decenber 31 During the year, earned $150,000 in cash revente and paid $88,000 for cash operating expenses. December 31 Declared the cash dividend on the outstanding sharea of pretorred stock for Year 1 . The dividend witl be paid on February is to ntoekholderi of record on January 10, Year 2. Decenbex 31 closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 Yebruary Paid the eanh dividend deelared on becember 31 , Year 1. Mareh 3 sold 15,000 sharea of the \$50- par preterred btook for $53 per ahare. May 5 Purehased 900 mhares of the conmon stoek as treasury ptock at $24 per whare. Dece-ber During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating exponces. 31 Decenber Declared the annual dividend on the preferred ntock and a $0.50 per share dividend on the conmon 31 stock. Decerber closed revenue, expenie, and dividend accounts to the retained earnings account.- 31 Problem 11-25A (Static) Part a Required a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. Complete this question by entering your answers in the tabs below. Prepare jourmal 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.)
