Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sun Corporation received a charter that authorized the issuance of 94,000 shares of $4 par common stock and 20,000 shares of $100 par, 8 percent

Sun Corporation received a charter that authorized the issuance of 94,000 shares of $4 par common stock and 20,000 shares of $100 par, 8 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation.

Year 1

January 5 Sold 14,100 shares of the $4 par common stock for $6 per share.

January 12 Sold 2,000 shares of the 8 percent preferred stock for $110 per share.

April 5 Sold 18,800 shares of the $4 par common stock for $8 per share.

December 31 During the year, earned $310,400 in cash revenue and paid $240,900 for cash operating expenses

December 31 expenses. 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 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 $8 per share

December 31 During the year, earned $247,800 in cash revenues and paid $173,000 for cash operating expenses

December 31 Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock

A) organize transaction data in accounts under an accounting equation.

C-1) what is the number of shares outstanding at the end of year 1? At the end of year 2? How many common shares had been issued at the end of year 1? At the end of year 2?

C-2) are there any differences between issued and outstanding common shares for year 1 and year 2?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions

Question

What does non-recourse financing mean?

Answered: 1 week ago

Question

2. Construct a simple financial planning model.

Answered: 1 week ago

Question

explain the underlying concepts of accounting;

Answered: 1 week ago