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Sun Corporation recelved a charter that authorized the issuance of 89.000 shares of $3 par common stock and 20,000 shares of $75 par, 7 pefcent

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Sun Corporation recelved a charter that authorized the issuance of 89.000 shares of $3 par common stock and 20,000 shares of $75 par, 7 pefcent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 Jan. 5 sold 13,350 shares of the $3 par coenon stock for $5 per share. 12 sold 2 , 6ee shares of the 7 percent preferred stock for $85 per share. Apr. 5 Sold 17,860 shares of the $3 par comon stock for $7 per share. Dec. 31 ouring the year, earned $306,800 in cash revenue and paid $241,760 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 Decerber 31, Year 1. Mar. 3 sold 3,600 shares of the $75 par preferred stock for $95 per share. May. 5. Purchased 500 shares of the coenon stock as treasury stock at $6 per share. Dec.31 During the year, earned $250,209 in cash revenues and paid $177, 000 for cash operating expenses. 31 declared the, annual dividend on the preferred stock and a se. 25 per share dividend on the connon stock. b. Prepare the balance sheets at December 31, Year 1 and Year 2 (Amounts to be deducted should be indicated with minus sign.) Nowell Inc. had the following stock issued and outstanding at January 1 , Year 2 : 1. 150.000 shares of no-par common stock. 2. 30,000 shares of $50 par, 4 percent, cumulative preferred stock. (Dividends are in arrears for one year.) On March 8, Year 2. Nowell declared a $175,000 cash dividend to be pald March 31 to shareholders of record on March 20. Required What amount of dividends will be paid to the preferred shareholders versus the common shareholders

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