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 85,000 shares of $6 par common stock and 22,000 shares of $100 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 Jan. 5 sold 12,750 shares of the $6 par common stock for $8 per share. 12 Sold 2,200 shares of the 4 percent preferred stock for $11e per share. Apr. 5 Sold 17,eee shares of the $6 par common stock for $10 per share. Dec. 31 During the year, earned $311,980 in cash revenue and paid $238,400 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 19, Year 2. Year 2 Feb.15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,300 shares of the $180 par preferred stock for $120 per share. May. 5 Purchased 500 shares of the common stock as treasury stock at $12 per share. Dec. 31 During the year, earned $248,488 in cash revenues and paid $175,000 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $8.50 per share dividend on the common stock. Problem 11-26A (Algo) Part a 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.) SUN CORPORATION Accounting Equation Stockholders' Equity ' Assets = Liabilities Event No. Cash Treasury Dividends Payable + Preferred Stock Common Stock Paid-in Capital in Excess of Par- Preferred Stock + Paid-in Capital in Excess of Par- Common Stock Stock Retained Earnings Account Titles for Retained Earnings Year 1 Jan.5 + + + + Jan. 12 = + + + + + + + Apr.5 + + + + + + Dec. 31 = + + + + = + + + + Dec.31 Dec.31 Bal. . = + + + + + + 0 + + + 0 + 0 = 0 0 + + 0 + 0 + + 0 Year 2 2 Feb. 15 + + + + + Mar 3 = + + + + + + + + + + May 5 Dec 31 + + + + + + Dec. 31 = + + + + + + + + + Dec.31 Bal. 0 = 0 + 0 + 0 0 + 0 0