Sun Corporation received a charter that authorized the issuance of 98,000 shares of $7 par common stock and 20,000 shares of $100 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation.

Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. Year 1

January 5	Sold 14,700 shares of the $7 par common stock for $9 per share.
January 12	Sold 2,000 shares of the 6 percent preferred stock for $110 per share.
April 5	Sold 19,600 shares of the $7 par common stock for $11 per share.
December 31	During the year, earned $307,200 in cash revenue and paid $235,800 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 $100 par preferred stock for $120 per share.
May 5	Purchased 550 shares of the common stock as treasury stock at $14 per share.
December 31	During the year, earned $245,200 in cash revenues and paid $173,400 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.

No	Date	General Journal	Debit	Credit
1	Jan 05	Cash	132,300
		Common stock		102,900
		Paid-in capital in excess of par value-common stock		19,600
2	Jan 12	Cash	220,000
		Preferred stock		208,000
		Paid-in capital in excess of par value-preferred stock		12,000
3	Apr 05	Cash	215,600
		Common stock		137,200
		Paid-in capital in excess of par value-common stock		78,400
4	Dec 31	Cash	307,200
		Service revenue		307,200
5	Dec 31	Operating expenses	235,800
		Cash		235,800
6	Dec 31	Dividends	1,200
		Dividends payable		1,200
7	Dec 31	Service revenue	307,200
		Retained earnings		307,200
8	Dec 31	Retained earnings	235,800
		Operating expenses		235,800
9	Dec 31	Retained earnings	1,200
		Dividends		1,200
10	Feb 15	Dividends payable	1,200
		Cash		1,200
11	Mar 03	Cash	360,000
		Preferred stock		300,000
		Paid-in capital in excess of par value-preferred stock	60,000
12	May 05	Treasury stock (common)	13,200
		Cash		13,200
13	Dec 31	Cash	245,200
		Service revenue		245,200
14	Dec 31	Operating expenses	173,400
		Cash		173,400
15	Dec 31	Dividends	33,750
		Dividends	37,440
		Dividends payable		71,190
16	Dec 31	Service revenue	245,200
		Retained earnings		245,200
17	Dec 31	Retained earnings	307,200
		Operating expenses		307,200
18	Dec 31	Retained earnings	71,190
		Dividends		71,190