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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

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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 , shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during first two years of operation. Year 1 January 5 sold 6,000 shares of the $10 par common stock for $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 stock for $21 per share. December 31 During the year, earned $150,000 in cash revenue and paid $88,000 for cash operating expense December 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The divi will be paid on February 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 February Paid the cash dividend declared on December 31, Year 1 . 15 March 3 Sold 15,000 shares of the $50 par preferred stock for $53 per share. May 5 Purchased 900 shares of the common stock as treasury stock at $24 per share. December During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expens 31 December Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the co 31 stock. December closed revenue, expense, and dividend accounts to the retained earnings account. 31 b. Prepare the balance sheets at December 31 , Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Prepare the balance sheets at December 31 , Year 1

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