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Sun Corporation recelved a charter that authorized the Issuance of $109,000$ shares of $$5$ par common stock and $20,000$

shares of $$125$ par, $8$ percent cumulative preferred stock. Sun Corporation completed the following transactions during Its

first two years of operation.

Year $1$

January $5$ Sold $16,350$ shares of the $$5$ par common stock for $$7$ per share.

January $12$ Sold $2,000$ shares of the $8$ percent preferred stock for $$135$ per share.

April $5$ Sold $21,8$ shares of the $$5$ par common stock for $$9$ per share.

December $31$ During the year, earned $$302,300$ in cash revenue and paid $$238,900$ 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 $3,0$ e shares of the $$125$ par preferred stock for $$145$ per share.

May $5$ Purchased $550$ shares of the common stock as treasury stock at $$10$ per share.

December $31$ During the year, earned $$251,500$ in cash revenues and paid $$176,800$ for cash operating expenses.

December $31$ Declared the annual dividend on the preferred stock and a $$0\mathrm{.}25$ per share dividend on the common stock.

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

Required

a$.$ Prepare journal entrles for these transactions for Year $1$ and Year $2$ and post them to T$-$accounts.

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