Required intormation Problem 11-25A 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 105,000 shares of $7 par common stock and 21,000 shares of $100 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 15,750 shares of the $7 par common stock for $9 per share. 12 Sold 2,100 shares of the 7 percent preferred stock for $110 per share. Apr. 5 Sold 21,000 shares of the $7 par common stock for $11 per share. Dec. 31 During the year, earned $313,400 in cash revenue and paid $242,900 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 10, Year 2. 31 Closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,150 shares of the $100 par preferred stock for $120 per share. May 5 Purchased 600 shares of the common stock as treasury stock at $14 per share. Dec. 31 During the year, earned $248,300 in cash revenues and paid $173,900 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. 31 Closed revenue, expense, and dividend accounts to the retained earnings account. Problem 11-25A Part a Required a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answer to the nearest dollar amount. Select "12/31 cl." for all the closing entries.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 ..... 18 Sold 15,750 shares of the $7 par common stock for $9 per share. Note: Enter debits before credits. Date General Journal Debit Credit Jan 05 Record entry Clear entry View general journal Year 1 Cash Dividends Payable Year 1 Year 1 End. Bal. End. Bal. Retained Earnings Preferred Stock Year 1 Year 1 End. Bal. End. Bal. Common Stock Paid-in Capital in Excess of Par-Preferred Stock Year 1 Year 1 End. Bal. End. Bal. Dividends Paid-in Capital in Excess of Par-Common Stock Year 1 Year 1 End. Bal. End. Bal. Service Revenue Operating Expenses Year 1 Year 1 End. Bal. End. Bal. Year 2 Year 2 Cash Dividends Payable Year 2 Beg. Bal. Year 2 Beg. Bal. End. Bal. End. Bal. Retained Earnings Preferred Stock Year 2 Beg. Bal. Year 2 Beg. Bal. End. Bal. End. Bal. Common Stock Year 2 Paid-in Capital in Excess of Par-Preferred Stock Year 2 Beg. Bal. Beg. Bal. End. Bal. End. Bal. Paid-in Capital in Excess of Par-Common Stock Dividends Year 2 Year 2 Beg. Bal. Beg. Bal. End. Bal. End. Bal. Treasury Stock (Common) Service Revenue Year 2 Beg. Bal. Year 2 Beg. Bal. End. Bal. End. Bal. Operating Expenses Year 2 Beg. Bal. End. Bal
