Sun Corporation received a charter that authorized the issuance of 89,000 shares of $3 par common stock and 21,000 shares of $75 par, 8 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 13,350 shares of the $3 par common stock for $5 per share. 12 Sold 2,100 shares of the 8 percent preferred stock for $85 per share. Apr. 5 Sold 17,800 shares of the $3 par common stock for $7 per share. Dec. 31 During the year, earned $301,200 in cash revenue and paid $240,000 for cash operating expenses. Year 2 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. 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 550 shares of the common stock as treasury stock at 56 per share. Dec. 31 During the year, earned $245, 100 in cash revenues and paid $172,600 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.25 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 Event Assest Liabilities Year 1 Jan 5 Jan 12 Apr 5 Dec.311 Dec 31 Dec 31 Bal Year 2 Feb.15 Mar 3 May 5 Dec 31 Dec.31 Dec 31 Bal. SUN CORPORATION Accounting Equation Stockholders' Equity Paid-in Cash Dividends Payable Capital in Preferred Common Stock Stock Paid-in Capital in Excess of Preferred Stock Excess of Common Stock Treasury Stock Retained Eamings Account Titles for Retained Earnings " + . 1 . 5:59 aces Stockholders' equity SUN CORPORATION Balance Sheet (Partial) As of December 31, Year 1 Total paid-in capital Total stockholders' equity Assets SUN CORPORATION. Balance Sheet As of December 31, Year 2 Total assets Liabilities Total liabilities Stockholders' equity Total paid-in capital Total stockholders' equity Total liabilities and stockholders' equity