Sun Corporation received a charter that authorized the issuance of 105,000 shares of $8 par common stock and 19,000 shares of $75 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 15,750 shares of the $8 par common stock for $10 per share. 12 Sold 1,900 shares of the 7 percent preferred stock for $85 per share. Apr. 5 Sold 21,000 shares of the $8 par common stock for $12 per share. Dec.31 During the year, earned $300, 400 in cash revenue and paid $243,600 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 2,850 shares of the $75 par preferred stock for $95 per share. May 5 Purchased 550 shares of the common stock as treasury stock at $16 per share. Dec.31 During the year, earned $247, 100 in cash revenues and paid $173,700 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 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. Required A Required B Required C Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is a indicate the account title. Leave the cell blank if there is no effect.) SUN CORPORATION Accounting Equation Stockholders' Equity Event Assest = Liabilities + Cash Dividends Payable Preferred Stock Common Stock Paid-in Paid-in Capital in Capital in Excess of + Excess of Preferred Common Stock Stock Treasury Stock Retained Earnings Account Titles for Retained Earnings = + + + + Year 1 Jan.5 Jan. 12 Apr.5 Dec.31 = + + + + + = + + + + + = 1 + + + + - + + + + + + Dec.31 Dec.31 Bal. = + + + + = + + + Year 2 Feb. 15 Mar. 3 + + + + + + + May 5 Dec.31 Dec.31 Dec.31 + 1 + Bal. Required A Required B > c. Prepare the balance sheet at December 31, Year 2. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare the stockholders' equity section of the balance sheet at December 31, Year 1. SUN CORPORATION Balance Sheet (Partial) As of December 31, Year 1 Stockholders' equity Total paid-in capital Total stockholders' equity