Sun Corporation feceived a cherter that outhorized the ittuance of 100,000 shares of $10 por common stock ond 50.000 sheres of \$50 par, 5 percent cumulative preferred atock Sun Corporstion completed the following transsctions during its fint two years of operation. Yeat 1 Jomuscy 12 sold 3 , deed thared af the bipertent peereered stock foe is per share. oecmber 11 Curinn the yeat, earmed 13be, ooe in cash cevenut and palil sum, owe foe cash ogerating expenses. Betcebee, 11 clored the reveive, copense. and divibend actounte to the retained earning aceount. Yest 2 Mareh 1 solid 15, e0e ilares of the 150 par peeferred iteck for isi per thare. peceeber in clesed revertue, expente, and dividend aceounts to the retatned eaetires actount. Required a. Frepore journal entries for these trensections for Year 1 and Yest 2 end post them to T-accounts, Curiptete tiis question by antering your answers in the tatis bedow. Journal entry worksheet \begin{tabular}{l|llllllll} 2 & 3 & 4 & 5 & 0 & 7 & 3 & & 18 \end{tabular}> Sold 6,000 shares of the 310 par cammon stock for 515 per share. Record the transacticn Nuteil Croter eintsts behere urtuits. Sun Corporation recelved o charter thet outhorited the issuonce of 100,000 sheres of 510 por common stock and 50.000 shares of $50 par, 5 percent cumulstive preferred atock. Sun Corporation completed the following tronsactions during its firtt two years of operation Yeor 1 January S sold 6, ,e0e shacen of the 110 par comon steck foe 31s per ahare. 2anuary 12, sold 1, eod sharet of the 1 pontent preferred otock for iss peri shace. Aprit is sald 3e, wee ishares of the 3ie par compon stock foc 121 per itare. Becepben 11 peclared the cash dividond on the outstanding shares of preferred steck foe vean 1. fte otvidend wiIl be jaaid on february 14 to ktociholfers of rocori on, january ie, tear 2. becenber if clexed the pevenus, copense, and dividend accounts to the rotathed carnings account. Yest2 rebruary is rait the cash dividend deciared on occeuber n1, vear 1. rarch 1 sold is, oeo shares of the 150 gar preferred atock for isy per thare. May 3 purehased 90 shares of the coepon steck as treasury atock at 124 per share. Deccober a1 buring the year, carned 2710 , le0 in rash rertnuet and pasid 395 , 600 foe cash noerating cxpenses. becenber a3 peclared the annual dividend on the prefered rtock and a le.so per share dividrnd on the cormon stock. oecceber 11 clesed revenue, oxpense, and dividend acceunts to the retained earaingt acteunt. b. Prepare the bolonce sheets at December 31, Yeor 1 and Year 2 Complete this question by entering your answers in the tats below. Prepare the balance sheeds at Decuinber 31, Year 1. Sun Corporation received o charter that authorized the issuonce of 100,000 shares of 510 por common stock and 50,000 shores of $50 por, 5 percent cumulotive preferred stock. Sun Corporotion completed the following tronsactions during its first two yeary of operation. Year 1 January 5 sold 6 ,eod shares of the s1e par careon rtock for 115 per share. 3anuary 12 Sold 1, ewe shares of the b percent preferred stock for sss por share. Aphi1 : Sold 18,000 shares of the 110 par comon stock for 321 per share. Decenber a1 Durine the year, earned 3130 , 00o in cash revenue and pald sas, ooe for cash operating expenser. Deconber a1 Declared the cash dfvidend on the outwtanding sharen of preferred stock for thar 1. the dividend will be poid on februacy 15 to stoctholders of necord on January ie. Yoar 2. Becenboe 31 Closed the revenve, expense, and dividend accounts to the retaind earnings acrount. Year 2 kebruacy is latd the cash asvidond declared on Beconber i1, Vear 1. Manch 3 Sold 15, oea. shares of the 3sa par prefecred atock fon ssi per thare. Decorber it burine the year, earned 3210, ood in cash revenues and paid sis, bee for cash speratilg expentes. 0-1. What is the number of common sheres outstonding ot the end of Year 1? At the end of Year 2? How many common shares had. been issued ot the end of Yeor t? At the end of Year 2 ? c-2. Is there o difference between issued and outstanding common shares for Yeor t? For Yesr 2 ? Complete this questlon by entering your answers in the tabs below. What is the number of common shares outafding at the end of Year 1? At the end of Year 2? Hom mamy commort sharta Bice Company completed the following transactions in Year 1 , the first year of operation: 1. Issued 46,000 shares of no-par common stock for $15 per share. 2. Issued 8,600 shares of $25 par, 6 percent, preferred stock for $25 per share 3. Paid a cash dividend of $12,900 to preferred shareholders 4. Issued a 10 percent stock dividend on no-par common stock. The market value at the dividend declaration date was $20 per share 5. Later that year, issued a 2 -for-1 spit on the shares of outstanding common stock. The market price of the stock at that time was $60 per share 6. Produced $200,000 of cash revenues and incurted $90,000 of cash operating expenses. 7. Closed the revenue, expense, and dividend accounts to retained earnings Required 0. Record each of these events in a horizontal statements model. (In the Statement of Cash Flows column, Indicate whether the Item Is an operating activity (OA), Invecting octivity (IA), or financing octivity (FA) and net change In cosh (NC). Leave biank to indicate that an element is not affected by the event. Enter any decreases to occount balonces and cash outflows with a minus sign.)
