Sun Corporation received a charter that authorized the issuance of 87,000 shares of $7 par common stock and 22,000 shares of $125 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:
cash operating on the outstanding abares of preferred stock Required information Problem 8-23 Recording and reporting stock transactions and cash dividends across two accounting cycles LO 8-3, 8-4, 8-5, 8-6 The following information applies to the questions displayed below.) Sun Corporation received a charter that authorized the issuance of 87,000 shares of $7 par common stock and 22.000 shares of $125 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: 2018 Jan. 5 sold 13,050 shares of the $7 par common stock for $9 per share. Apr. 5 sold 17,400 shares of the $7 par common stock for $11 per share. 12 Sold 2,200 shares of the percent preferred stock for $135 per share. Dec. 31 During the year, earned $315,500 in cash revenue and paid $242,500 for 31 Declared cash for 2018. The dividend will be paid on February 15 to stockholders af record on January 10, 2019. 2019 Feb. 15 Paid the cash dividend declared on December 31, 2018. Mar. 3 Sold 3,300 shares of the $125 par preferred stock for $115 per share. May. 5 Purchased 500 shares of the common stock as treasury stock at $14 per share. Dec. 31 During the year, earned $250,800 in cash revenues and paid $170,000 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 information Cash Dividends Payable Preferred Stock Common Capital in Capital in Stock Excess of + Excess of Preferred Common Stock Treasury tel+ Stock Retained Earnings Accounts Titles for Retained Eamings Stock 2018 + 91.350 + +1 26,100 - + + 117.450 = 297,000 I+P 1+ + + + + + + + Jan.5 Jan. 12 Apr.5 Dec.31 Dec.31 Dec 31 Bal. 1+ 1+ + H + H + + + +1 +1 + + +1 + + Service revenue Operating expenses Dividends 0 + + + + 414,450 0 + 0+ 91,350 0 + 28,100 - 0+ 2019 + + + = . 1 + . + + + _ 1+ + + . + Feb. 15 Mar. 3 May.5 Dec. 31 Dec.31 Dec 31 Bal + + + 41 + + 1.1 + + + 414.450 = 0 + 0 + 91,350 + 0 0 + 26,100 - 0+ 0 Problem 8-23 Part b b. Prepare the stockholders' equity section of the balance sheet at December 31, 2018, SUN CORPORATION December 31, 2018 Stockholders' equity Total paid-in capital Total stockholders' equity c. Prepare the balance sheets at December 31, 2019. (Negative amount should be indicated by a minus sign) SUN CORPORATION Balance Sheet As of December 31, 2019 Assets Total assets Liabilities Total liabilities Stockholders' equity Total pald-in capital Total stockholders' equity Total liabilities and stockholders' equity
