Sun Corporation received a charter that authorized the issuance of 85,000 shares of $6 par common stock and 20,000 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 12,750 shares of the $6 par common stock for $8 per share.
	12		Sold 2,000 shares of the 5 percent preferred stock for $110 per share.
Apr.	5		Sold 17,000 shares of the $6 par common stock for $10 per share.
Dec.	31		During the year, earned $308,900 in cash revenue and paid $241,200 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 3,000 shares of the $100 par preferred stock for $120 per share.
May	5		Purchased 500 shares of the common stock as treasury stock at $12 per share.
Dec.	31		During the year, earned $248,700 in cash revenues and paid $175,000 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

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.

Sun Corporation received a charter that authorized the issuance of 85,000 shares of $6 par common stock and 20,000 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 12,750 shares of the $6 par common stock for $8 per share. 12 Sold 2,000 shares of the 5 percent preferred stock for $110 per share. Apr. s Sold 17,000 shares of the $6 par common stock for $10 per share. Dec.31 During the year, earned $308,900 in cash revenue and paid $241,200 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 3,000 shares of the $100 par preferred stock for $120 per share, May 5 Purchased 500 shares of the common stock as treasury stock at $12 per share. Dec. 31 During the year, earned $248,700 in cash revenues and paid $175,000 for cash operating expennen. 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. SUN CORPORATION Balance Sheet As of December 31, Year 2 Assets Cash Common stock Total assets Liabilities Paid-in capital in excess of par-common stock $ 0 $ 0 Total liabilities Stockholders' equity Total paid-in capital 0 SUN CORPORATION Accounting Equation Stockholders' Equity Event Assest Liabilities Cash Dividends Payable Preferred Stock Common Stock Paid-in Paid in Capital in Capital in Excess of + Excess of Preferred Common Stock Stock Treasury Stock Retained Earnings Account Titles for Retained Earnings Year 1 ### +++ Jan 5 Jan. 12 Apr. 5 Dec 31 Dec 31 Dec 31 Bal 0 0 0 0 0 0 0 + 0 Year 2 Feb. 15 + + + Mar 3 May 5 Dec 31 Dec 31 Dec. 31 Bal. ### 0 = 0+ 0 0 0 + 0 0 0 SUN CORPORATION Balance Sheet As of December 31, Year 2 Assets Cash Common stock Total assets Liabilities Paid-in capital in excess of par-common stock $ 0 $ 0 Total liabilities Stockholders' equity Total paid-in capital 0