Sun Corporation received a charter that authorized the issuance of 90,000 shares of $4 par common stock and 22,000 shares of $100 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 13,500 shares of the $4 par common stock for $6 per share. 12 Sold 2,200 shares of the 5 percent preferred stock for $110 per share. Apr. 5 Sold 18,000 shares of the $4 par common stock for $8 per share. Dec.31 During the year, earned $304,200 in cash revenue and paid $235,400 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. Year 2 Feb.15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,300 shares of the $100 par preferred stock for $120 per share. May 5 Purchased 550 shares of the common stock as treasury stock at $8 per share. Dec.31 During the year, earned $253,600 in cash revenues and paid $176,600 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the stockholders' equity section of the balance sheet at December 31 , Year 1. c. Prepare the balance sheet at December 31, Year 2. \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ SUN CORPORATION } \\ \multicolumn{1}{|c|}{ Balance Sheet (Partial) } \\ \hline \multicolumn{1}{|c|}{ As of December 31, Year 1} & \\ \hline Stockholders' equity & \\ \hline Preferred stock & \\ \hline Common stock & \\ \hline Paid-in capital in excess of par-preferred stock & \\ \hline Paid-in capital in excess of par-common stock & \\ \hline & \\ \hline Total paid-in capital & \\ \hline Retained earnings & \\ \hline \end{tabular} SUN CORPORATION Balance Sheet As of December 31 , Year 2 Assets \begin{tabular}{|l|l|} \hline Cash & \\ \hline \end{tabular} Total assets Liabilities Dividend payable Total liabilities $ Stockholders' equity Preferred stock Common stock Paid-in capital in excess of par-preferred stock Paid-in capital in excess of par-common stock Total paid-in capital Retained earnings Less: Treasury stock (Common) Total stockholders' equity Total liabilities and stockholders' equity