Sun Corporation received a charter that authorized the issuance of 114,000 shares of $8 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 $8 par common stock for $10 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 $8 par common stock for $12 per share.
Dec.	31		During the year, earned $319,100 in cash revenue and paid $235,200 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 3,150 shares of the $75 par preferred stock for $95 per share.
May	5		Purchased 600 shares of the common stock as treasury stock at $16 per share.
Dec.	31		During the year, earned $251,300 in cash revenues and paid $174,400 for cash operating expenses.
	31		Declared the annual dividend on the preferred stock and a $0.50 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 Accounting Equation Stockholders' Equity Event Assest - Liabilities Cash Dividends Payable Preferred Stock Common Stock Paid in Capital in Excess of Preferred Stock Paid in Capital in Excess of Common Stock Treasury Stock Retained Earnings Account Titles for Retained Earnings ol 0.1 ol 171,000 178,500 = 136,800 0+ 34,200 0 0 + 01 - ol + 0 0 0 ol + 01 01 + Year 1 Jan 5 Jan. 12 Apr 5 Dec 31 Dec 31 Dec 31 Bal ol 0 + 0. ol ol 0 0. 0+ 0 + 0 + 136.800 0+ 01 + 0+ 0 01 - 01- 0 34,200 0 349,500 = 01 - 0 + 0 + 0+ 0 0.1 0 0+ 0+ 0+ 0 0 01 + 01 - ol 0 0 ol 0+ 0 Year 2 Feb. 15 Mar 3 May 5 Dec 31 Dec 31 Dec 31 Bal ol 01 + 01 0 0. ol 0+ 0 + 01 + 0 01 + 0+ 01 - 01- 01 - 34,200 + 0 + 01 + 0 = 349,500 = 01. 0 136.800 0+ 0