Question
Sun Corporation received a charter that authorized the issuance of 93,000 shares of $4 par common stock and 21,000 shares of $75 par, 6 percent
Sun Corporation received a charter that authorized the issuance of 93,000 shares of $4 par common stock and 21,000 shares of $75 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:
2018
| Jan. | 5 | Sold 13,950 shares of the $4 par common stock for $6 per share. | |
| 12 | Sold 2,100 shares of the 6 percent preferred stock for $85 per share. | ||
| Apr. | 5 | Sold 18,600 shares of the $4 par common stock for $8 per share. | |
| Dec. | 31 | During the year, earned $310,800 in cash revenue and paid $240,700 for cash operating expenses. | |
| 31 | Declared the cash dividend on the outstanding shares of preferred stock for 2018. The dividend will be paid on February 15 to stockholders of record on January 10, 2019. |
2019
| Feb. | 15 | Paid the cash dividend declared on December 31, 2018. | |
| Mar. | 3 | Sold 3,150 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. | |
| Dec. | 31 | During the year, earned $245,900 in cash revenues and paid $175,900 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
-
Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Indicating to provide separate effect on accounting equation for Revenue, Operating expense, and leave the cell blank if there is no effect.)
| Sun Corporation | ||||||||||||||||
| Accounting Equation | ||||||||||||||||
| Event | Assest | = | Liabilities | Stockholders Equity | ||||||||||||
| 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 | Accounts Titles for Retained Earnings | ||
| 2018 | ||||||||||||||||
| Jan.5 | not attempted | = | not attempted | + | not attempted | + | not attempted | + | not attempted | + | not attempted | not attempted | + | not attempted | not attempted | |
| Jan.12 | not attempted | = | not attempted | + | not attempted | + | not attempted | + | not attempted | + | not attempted | not attempted | + | not attempted | not attempted | |
| Apr.5 | not attempted | = | not attempted | + | not attempted | + | not attempted | + | not attempted | + | not attempted | not attempted | + | not attempted | not attempted | |
| Dec.31 | not attempted | =not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | not attempted | not attempted | +not attempted | not attempted | not attempted |
| Dec.31 | not attempted | =not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | not attempted | not attempted | +not attempted | not attempted | not attempted |
| Dec.31 | not attempted | =not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | not attempted | not attempted | +not attempted | not attempted | not attempted |
| Bal. | 0 | = | 0 | + | 0 | + | 0 | + | 0 | + | 0 | 0 | + | 0 | ||
| 2019 | ||||||||||||||||
| Feb.15 | not attempted | = | not attempted | + | not attempted | + | not attempted | + | not attempted | + | not attempted | not attempted | + | not attempted | not attempted | |
| Mar.3 | not attempted | = | not attempted | + | not attempted | + | not attempted | + | not attempted | + | not attempted | not attempted | + | not attempted | not attempted | |
| May.5 | not attempted | = | not attempted | + | not attempted | + | not attempted | + | not attempted | + | not attempted | not attempted | + | not attempted | not attempted | |
| Dec.31 | not attempted | =not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | not attempted | not attempted | +not attempted | not attempted | not attempted |
| Dec.31 | not attempted | =not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | not attempted | not attempted | +not attempted | not attempted | not attempted |
| Dec.31 | not attempted | =not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | not attempted | not attempted | +not attempted | not attempted | not attempted |
| Bal. | 0 | = | 0 | + | 0 | + | 0 | + | 0 | + | 0 | 0 | + | 0 | ||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Audit Process Principles Practice And Cases
Authors: Iain Gray, Stuart Manson
5th Edition
1408030497, 9781408030493
