(The following information applies to the questions displayed below.] Sun Corporation recelved a charter that authorized the Issuance of 86,000 shares of $3 par common stock and 20,000 shares of $100 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 sold 12,900 shares of the $3 par common stock for $5 per share. 12 sold 2,000 shares of the 4 percent preferred stock for $11e per share. Apr. 5 sold 17,200 shares of the $3 par connon stock for $7 per share. Dec. 31 During the year, earned $313, 200 in cash revenue and paid $242,30e 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. 31 closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 Feb. 15 Paid the cash dividend declared on Decenber 31, Year 1. Mar. 3 sold 3,000 shares of the $100 par preferred stock for $120 per share. 5 Purchased 55e shares of the connon stock as treasury stock at $6 per share. May Dec. 31 During the year, earned $251, 300 in cash revenues and paid $173,800 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a se. se per share dividend on the connon stock. 31 Closed revenue, expense, and dividend accounts to the retained earnings account.
(The following information applies to the questions displayed below.] Sun Corporation recelved a charter that authorized the Issuance of 86,000 shares of $3 par common stock and 20,000 shares of $100 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 sold 12,900 shares of the $3 par common stock for $5 per share. 12 sold 2,000 shares of the 4 percent preferred stock for $11e per share. Apr. 5 sold 17,200 shares of the $3 par connon stock for $7 per share. Dec. 31 During the year, earned $313, 200 in cash revenue and paid $242,30e 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. 31 closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 Feb. 15 Paid the cash dividend declared on Decenber 31, Year 1. Mar. 3 sold 3,000 shares of the $100 par preferred stock for $120 per share. 5 Purchased 55e shares of the connon stock as treasury stock at $6 per share. May Dec. 31 During the year, earned $251, 300 in cash revenues and paid $173,800 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a se. se per share dividend on the connon stock. 31 Closed revenue, expense, and dividend accounts to the retained earnings account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![(The following mnformation applies to the questions displayed below.]
Sun Corporation received a charter that authorized the Issuance of 86,000 shares of $3 par common stock and 20,000
shares of $100 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during Its
first two years of operation:
Year 1
5 sold 12,900 shares of the $3 par common stock for $5 per share.
12 sold 2,e0e shares of the 4 percent preferred stock for $110 per share.
S sold 17,200e shares of the $3 par comnon stock for $7 per share.
Jan.
Apr.
Dec. 31 During the year, earned $313, 200 in cash revenue and paid $242,30e 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.
31 closed the revenue, expense, and dividend accounts to the retained earnings account.
Year 2
Feb. 15 Paid the cash dividend declared on December 31, Year 1.
Mar.
3 sold 3, eee shares of the siee par preferred stock for $120 per share.
May
5 Purchased 55e shares of the connon stock as treasury stock at Se per share.
Dec. 31 During the year, earned $251, 300 in cash revenues and paid S173,80 for cash operating expenses.
31 Declared the annual dividend on the preferred stock and a se.se per share dividend on the common stock.
31 Closed revenue, expense, and dividend accounts to the retained earnings account.
Required
a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. (If no entry is required for a
transaction/event, select "No Journal entry required" In the first account field. Round your intermedlete calculetions and final
answer to the nearest dollar amount. Select "12/31 cl." for all the closing entrles.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d39f439-c0df-4260-bff7-863bf3eaa9a0%2Ff410ea93-9ef5-4422-b18a-0b8f33dedfe6%2F5lbibv_processed.png&w=3840&q=75)
Transcribed Image Text:(The following mnformation applies to the questions displayed below.]
Sun Corporation received a charter that authorized the Issuance of 86,000 shares of $3 par common stock and 20,000
shares of $100 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during Its
first two years of operation:
Year 1
5 sold 12,900 shares of the $3 par common stock for $5 per share.
12 sold 2,e0e shares of the 4 percent preferred stock for $110 per share.
S sold 17,200e shares of the $3 par comnon stock for $7 per share.
Jan.
Apr.
Dec. 31 During the year, earned $313, 200 in cash revenue and paid $242,30e 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.
31 closed the revenue, expense, and dividend accounts to the retained earnings account.
Year 2
Feb. 15 Paid the cash dividend declared on December 31, Year 1.
Mar.
3 sold 3, eee shares of the siee par preferred stock for $120 per share.
May
5 Purchased 55e shares of the connon stock as treasury stock at Se per share.
Dec. 31 During the year, earned $251, 300 in cash revenues and paid S173,80 for cash operating expenses.
31 Declared the annual dividend on the preferred stock and a se.se per share dividend on the common stock.
31 Closed revenue, expense, and dividend accounts to the retained earnings account.
Required
a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. (If no entry is required for a
transaction/event, select "No Journal entry required" In the first account field. Round your intermedlete calculetions and final
answer to the nearest dollar amount. Select "12/31 cl." for all the closing entrles.)
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