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Sun Corporation received a charter that authorized the issuance of $100,000$ shares of $$10$ par common stock and $50,000$ shares of $$50$ par, $5$ percent preferred stock. Sun Corporation completed the following transactions during its first two years of operation.

Year $1$

January $5$ Sold $6,000$ shares of the $$10$ par common stock for $$15$ per share.

January $12$ Sold $1,000$ shares of the $5$ percent preferred stock for $$55$ per share.

April $5$ Sold $30,000$ shares of the $$10$ par common stock for $$21$ per share.

December $31$ During the year, earned $$150,000$ in cash revenue and paid $$88,000$ 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 $2.$

December $31$ Closed the revenue, expense, and dividend accounts to the retained earnings account.

Year $2$

February $15$ Paid the cash dividend declared on December $31,$ Year $1.$

March $3$ Sold $15,000$ shares of the $$50$ par preferred stock for $$53$ per share.

May $5$ Purchased $900$ shares of the common stock as treasury stock at $$24$ per share.

December $31$ During the year, earned $$210,000$ in cash revenues and paid $$98,000$ for cash operating expenses.

December $31$ Declared the annual dividend on the preferred stock and a $$0\mathrm{.}50$ per share dividend on the common stock.

December $31$ Closed revenue, expense, and dividend accounts to the retained earnings account.

b$.$ Prepare the balance sheets at December $31,$ Year $1$ and Year $2.$

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Prepare the balance sheets at December $31,$ Year $1.$

SUN CORPORATION

Balance Sheet