The following transactions relate to Sunlight Mountain Inc. Prepare journal entries for each transaction. Prepare the equity section of the balance sheet at each year-end, December 31.

1. On January 1, 2016, Sunlight purchased 200 shares of its common stock for $60 per share.

DATE

ACCOUNT NAME

DEBIT

CREDIT

BALANCE SHEET

INCOME STMT

A

=

L

+

E

R

-

E

1/1/16

2. On December 15, 2016, Sunlight declared and paid dividends totaling $6,600 during 2016. Prepare the companys equity section from December 31, 2016.

DATE

ACCOUNT NAME

DEBIT

CREDIT

BALANCE SHEET

INCOME STMT

A

=

L

+

E

R

-

E

12/15/16

Class of Stock	Total Dividend	Dividend Per Share
Preferred
Common

3. Sunlight reported net income of $20,000 during 2016. Prepare the companys stockholders equity section of the December 31, 2016, balance sheet.

Stockholders Equity:

Total Stockholders Equity