Problem 11-25A (Static) Recording and reporting stock transactions and cash accounting cycles LO 11-3, 11-6 [The following information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 100,000 shares of $10 par common stock and 50,0 shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during first two years of operation. Year 1 January 5 Sold 6,000 shares of the $10 par common stock for $15 per share. January 12 Sold 1,000 shares of the 5 percent preferred stock for $55 per share. April 5 Sold 30,000 shares of the $10 par common stock for $21 per share. December 31 During the year, earned $150,000 in cash revenue and paid $88,000 for cash operating expensem December 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The divic 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 Paid the cash dividend declared on December 31, Year 1. 15 March 3 Sold 15,000 shares of the $50 par preferred stock for $53 per share. May 5 Purchased 900 shares of the common stock as treasury stock at $24 per share. December During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expense 31 December Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the con 31 stock. December Closed revenue, expense, and dividend accounts to the retained earnings account. 31
Problem 11-25A (Static) Recording and reporting stock transactions and cash accounting cycles LO 11-3, 11-6 [The following information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 100,000 shares of $10 par common stock and 50,0 shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during first two years of operation. Year 1 January 5 Sold 6,000 shares of the $10 par common stock for $15 per share. January 12 Sold 1,000 shares of the 5 percent preferred stock for $55 per share. April 5 Sold 30,000 shares of the $10 par common stock for $21 per share. December 31 During the year, earned $150,000 in cash revenue and paid $88,000 for cash operating expensem December 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The divic 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 Paid the cash dividend declared on December 31, Year 1. 15 March 3 Sold 15,000 shares of the $50 par preferred stock for $53 per share. May 5 Purchased 900 shares of the common stock as treasury stock at $24 per share. December During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expense 31 December Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the con 31 stock. December Closed revenue, expense, and dividend accounts to the retained earnings account. 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please Do not Give image format
Transcribed Image Text:b. Prepare the balance sheets at December 31, Year 1 and Year 2.
Complete this question by entering your answers in the tabs below.
Year 1
Prepare the balance sheets at December 31, Year 1.
SUN CORPORATION
Balance Sheet
As of December 31, Year 1
Assets
Cash
Total assets
Liabilities
Total liabilities
Stockholders' equity
Year 2
Assets
Cash
Total assets
Liabilities
Show Transcribed Text
Total liabilities
Stockholders' equity
Total paid-in capital
Balance Sheet
As of December 31, Year 1
$
Total stockholders' equity
Total liabilities and stockholders' equity
$
0
0
0
$
$
$
0
0
0
0
![Required information
Problem 11-25A (Static) Recording and reporting stock transactions and cash dividends across two
accounting cycles LO 11-3, 11-6
[The following information applies to the questions displayed below.]
Sun Corporation received a charter that authorized the issuance of 100,000 shares of $10 par common stock and 50,0
shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during
first two years of operation.
Year 1
January 5 Sold 6,000 shares of the $10 par common stock for $15 per share.
January 12 Sold 1,000 shares of the 5 percent preferred stock for $55 per share.
April 5 Sold 30,000 shares of the $10 par common stock for $21 per share.
December 31 During the year, earned $150,000 in cash revenue and paid $88,000 for cash operating expenses
December 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The divid
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 Paid the cash dividend declared on December 31, Year 1.
15
March 3
Sold 15,000 shares of the $50 par preferred stock for $53 per share.
May 5 Purchased 900 shares of the common stock as treasury stock at $24 per share.
December During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expense
31
December Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the com
31 stock.
December Closed revenue, expense, and dividend accounts to the retained earnings account.
31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed4d9e12-99f1-466b-ba8a-e2fc2cdd22ec%2F0194126b-5767-4d04-8883-48c6bcb4df98%2Fa9bf3ec_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 11-25A (Static) Recording and reporting stock transactions and cash dividends across two
accounting cycles LO 11-3, 11-6
[The following information applies to the questions displayed below.]
Sun Corporation received a charter that authorized the issuance of 100,000 shares of $10 par common stock and 50,0
shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during
first two years of operation.
Year 1
January 5 Sold 6,000 shares of the $10 par common stock for $15 per share.
January 12 Sold 1,000 shares of the 5 percent preferred stock for $55 per share.
April 5 Sold 30,000 shares of the $10 par common stock for $21 per share.
December 31 During the year, earned $150,000 in cash revenue and paid $88,000 for cash operating expenses
December 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The divid
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 Paid the cash dividend declared on December 31, Year 1.
15
March 3
Sold 15,000 shares of the $50 par preferred stock for $53 per share.
May 5 Purchased 900 shares of the common stock as treasury stock at $24 per share.
December During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expense
31
December Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the com
31 stock.
December Closed revenue, expense, and dividend accounts to the retained earnings account.
31
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