Sun Corporation received a charter that authorized the issuance of 112,000 shares of $4 par common stock and 20,000 shares of $75 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 16, 800 shares of the $4 par common stock for $6 per share. January 12 Sold 2,000 shares of the 7 percent preferred stock for $85 per share. April 5 Sold 22,400 shares of the $4 par common stock for $8 per share. December 31 During the year, earned $313,000 in cash revenue and paid $237,400 for cash operating expenses. December 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. December 31 Closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 February 15 Paid the cash dividend declared on December 31, Year 1. March 3 Sold 3,000 shares of the $75 par preferred stock for $95 per share. May 5 Purchased 450 shares of the common stock as treasury stock at $8 per share. December 31 During the year, earned $253, 400 in cash revenues and paid $171, 800 for cash operating expenses. December 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. December 31 Closed revenue, expense, and dividend accounts to the retained earnings account. b. Prepare the balance sheets at December 31, Year 1 and Year 2.