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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

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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 115,000 shares of $7 par common stock and 20,000 shares of $100 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 Jan. 5 Sold 17,250 shares of the $7 par common stock for $9 per share. 12 Sold 2,000 shares of the 7 percent preferred stock for $110 per share. Apr. 5 Sold 23,000 shares of the $7 par common stock for $11 per share. Dec.31 During the year, earned $311,900 in cash revenue and paid $236,400 for cash operating expenses. 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. Year 2 Feb.15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,000 shares of the $100 par preferred stock for $120 per share. May. 5 Purchased 500 shares of the common stock as treasury stock at $14 per share. Dec. 31 During the year, earned $250,500 in cash revenues and paid $170,800 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. Required a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells require input.) Stockholder's' Equity Year 2 Feb.15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,000 shares of the $100 par preferred stock for $120 per share. May. 5 Purchased 500 shares of the common stock as treasury stock at $14 per share. Dec.31 During the year, earned $250,500 in cash revenues and poid $170,800 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. Problem 11-26A (Algo) 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? (Amounts to be deducted should be indicated with minus sign.) c-2. Are there any differences between issued and outstanding common shares for Year 1 and Year 2

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