Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Problem 11-26A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 113,116 [The following information applies to the

image text in transcribed
image text in transcribed
Required information Problem 11-26A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 113,116 [The following information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 89,000 shares of $8 par common stock and 21,000 shares of $100 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 13,350 shares of the $8 par common stock for $10 per share. January 12 Sold 2,100 shares of the 6 percent preferred stock for $110 per share. April 5 Sold 17,800 shares of the $8 par common stock for $12 per share, December 31 During the year, earned $313,000 in cash revenue and paid $240,300 for cash operating expenses. December 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 February 15 Paid the cash dividend dectared on Decenber 31, Year 1. March 3 Sold 3,150 shares of the $100 par preferred stock for $120 per share. May 5 Purchased 550 shares of the conmon stock as treasury stock at $16 per share, December 31 During the year, earned $250,100 in cash revenues and paid $178,300 for cash operating expenses. Decenber 31 Declared the annual dividend on the preferred stock and a $0.25 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? Note: 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Alan Webb, Theresa Libby

12th Canadian Edition

1260193276, 978-1260193275

More Books

Students also viewed these Accounting questions