Sun Corporation received a charter that authorized the issuance of 88,000 shares of $4 par common stock and 18,000 shares of $100 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:

Year 1

January 5	Sold 13,200 shares of the $4 par common stock for $6 per share.
12	Sold 1,800 shares of the 6 percent preferred stock for $110 per share.
April 5	Sold 17,600 shares of the $4 par common stock for $8 per share.
December 31	During the year, earned $315,600 in cash revenue and paid $238,800 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

February 15	Paid the cash dividend declared on December 31, Year 1.
March 3	Sold 2,700 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.
December 31	During the year, earned $254,100 in cash revenues and paid $174,200 for cash operating expenses.
31	Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock.

Required

1. Organize the transaction data in accounts under an accounting equation.
2. Prepare the stockholders equity section of the balance sheet at December 31, Year 1.
3. Prepare the balance sheet at December 31, Year 2.