Question
Sun Corporation received a charter that authorized the issuance of 114,000 shares of $5 par common stock and 21,000 shares of $75 par, 5 percent
Sun Corporation received a charter that authorized the issuance of 114,000 shares of $5 par common stock and 21,000 shares of $75 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 17,100 shares of the $5 par common stock for $7 per share. 12 Sold 2,100 shares of the 5 percent preferred stock for $85 per share. Apr. 5 Sold 22,800 shares of the $5 par common stock for $9 per share. Dec. 31 During the year, earned $317,200 in cash revenue and paid $241,900 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. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,150 shares of the $75 par preferred stock for $95 per share. May 5 Purchased 600 shares of the common stock as treasury stock at $10 per share. Dec. 31 During the year, earned $246,400 in cash revenues and paid $174,500 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 Organize the transaction data in accounts under an accounting equation. Prepare the stockholders equity section of the balance sheet at December 31, Year 1. Prepare the balance sheet at December 31, Year 2.
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Project Finance
Authors: B Rajesh Kumar
1st Edition
3030967247, 978-3030967246
