Required information Problem 8-23 Recording and reporting stock transactions and cash dividends across two accounting cycles LO 8-3, 8-4, 8-5, 8-6 [The following information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 105,000 shares of $7 par common stock and 22,000 shares of $125 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: 2018 Jan. 5 Sold 15,750 shares of the $7 par common stock for $9 per share. 12 Sold 2,200 shares of the 5 percent preferred stock for $135 per share. Apr. 5 Sold 21,000 shares of the $7 par common stock for $11 per share. Dec. 31 During the year, earned $306,700 in cash revenue and paid $237,500 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for 2018. The dividend will be paid on February 15 to stockholders of record on January 10, 2019. 2019 Feb. 15 Paid the cash dividend declared on December 31, 2018. Mar. 3 Sold 3,300 shares of the $125 par preferred stock for $145 per share. May. 5 Purchased 550 shares of the common stock as treasury stock at $14 per share. Dec. 31 During the year, earned $254,400 in cash revenues and paid $177,900 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 8-23 Part a Required Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Indicating to provide separate effect on accounting equation for Revenue, Operating expense, and "NA" for no effect.)

Part b Prepare the stockholders equity section of the balance sheet at December 31, 2018.