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 104,000 shares of $4 par common stock and 19,000 shares of $100 par. 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during first two years of operation. Year 1 January 5 Sold 15,600 whares of the $4 par comnon atook for $6 per whare. January 12 Sold 1,900 aharen of the 7 percent proferred atook for $110 per ahare. Aprit 5 Sold 20,800 sharea of the $4 par coenon stock for 58 per ahare. December 31 During the year, earned $306,000 in cash revenue and paid $237,500 for cash operating expensea. pecember 31 Declared the cank dividend on the outatanding thares of preforred ntoek for Year 1 . The dividend will bo paid on February 15 to atoekholdern of record on January 10, Year 2 . Year 2 Pebruary 15 Paid the caab dividend deolared on Docember 31 , Year 1. Mareh 3 Bold 2, 350 aharen of the $100 par preferred atook for $120 per alhare. Mny 5 purebased 550 wharea of the oontion stook an treasury atock at ss per ihare. December 31 buring the yesr, earned 5250,400 in eanh revenuen and peid 5176, 700 for caeh operating expenaes. December 31 Deolared the annual dividend oo the preferred stoek and a 50.75 per share dividend on ehe common stook. Notet Enter any decreases to account balances with a minus sign. Not alli cells require input. SUN COAPORATION Acrosnting Equation Stschosiden' Equity Preterted Stack Commen Stock Account titiovior Alech ned Earblive \begin{tabular}{l|l|l|} \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline+ & \\ \hline & \\ \hline & \\ \hline \end{tabular} \begin{tabular}{l|l|} \hline & \\ \hline+ & \\ \hline+ & \\ \hline+ & \\ \hline & \\ \hline & \\ \hline & 0 \\ \hline \end{tabular} \begin{tabular}{|l|l} \hline+ \\ + & \\ + & \\ + & \\ + & \\ + & \\ + & \\ + & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline+ & & \\ \hline+ & & \\ \hline & & \\ \hline+ & & \\ \hline & & \\ \hline+ & & \\ \hline+ & & \\ \hline+ & 0 & \\ \hline \end{tabular} 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
