Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

WO Sun Corporation received a charter that authorized the issuance of 102.000 shares of $5 par common stock and 19,000 shares of $125 par, 5

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
WO Sun Corporation received a charter that authorized the issuance of 102.000 shares of $5 par common stock and 19,000 shares of $125 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation Year 1 Jan. 5 sold 15,300 shares of the $5 par common stock for $7 per share. 12 Sold 1,9ee shares of the 5 percent preferred stock for $135 per share. Apr. 5 Sold 28.4ee shares of the $5 par common stock for $9 per share. Dec.31 During the year, earned $311,6ee in cash revenue and paid $236,500 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 19, Year 2. 2537 ped Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 2,850 shares of the $125 par preferred stock for $145 per share. May 5 Purchased 500 shares of the common stock as treasury stock at $10 per shafe Dec. 31 During the year, earned $246,300 in cash revenues and paid $179,eee for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.25 per share dividend on the common stock. cs Required a. Organize the transaction data in accounts under an accounting equation b. Prepare the stockholders' equity section of the balance sheet at December 31, Year 1 c. Prepare the balance sheet at December 31, Year 2 roblems Saved Help Save & Exit s Check my w Required a Required B Required Organize the transaction data in accounts under an accounting equation (Enter any decreases to account balances with a minus sign. If thu the account title. Leave the cell blank if there is no effect.) SUN CORPORATION Accounting Equation Stockholders' Equity Event Assest = Liabilities Dividends Payable Preferred Stock Common + Stock Cash Paid-in Paid in Capital in Capital in Excess of + Excess of Preferred Common Stock Stock Treasury Stock Retained Earnings Account Titles for Retained Earnings Year 1 Jan 5 + + + Jan 12 Apr 5 24 qu Requieu Requieu Prepare the stockholders' equity section of the balance sheet at December 31, Year 1. SUN CORPORATION Balance Sheet (Partial) As of December 31, Year 1 Stockholders' equity 0 Total paid-in capital 0 Total stockholders' equity Required C > . OEI > w UL 3 19 ch

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions