Required information Problem 11-26A (Algo) 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 97,000 shares of $5 par common stock and 19,000 shares of $75 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 Jan. 5 Sold 14,550 shares of the $5 par common stock for $7 per share. 12 Sold 1,900 shares of the 6 percent preferred stock for $85 per share. Apr. 5 Sold 19,400 shares of the $5 par common stock for $9 per share. Dec. 31 During the year, earned $307,500 in cash revenue and paid $240,700 for cash operating expenses. Year 2 31 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. Feb.15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 2,850 shares of the $75 par preferred stock for $95 per share. May. 5 Purchased 500 shares of the common stock as treasury stock at $10 per share. Dec.31 During the year, earned $250,500 in cash revenues and paid $177,600 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock.