Problem 11-26A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 11-3, 11-6 [The following Information applles to the questions displayed below] Sun Corporation recelved a charter that authorized the Issuance of 85,000 shares of $6 par common stock and 22,000 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 12,750 shares of the $6 par common stock for $8 per share. 12 Sold 2,200 shares of the 4 percent preferred stock for $11e per share. Apr. 5 Sold 17,ee0 shares of the $6 par common stock for $10 per share. Dec. 31 During the year, earned $311,900 in cash revenue and paid $238,400 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 December 31, Year 1. Mar. 3 Sold 3, 300 shares of the $100 par preferred stock for $120 per share. May. 5 Purchased see shares of the common stock as treasury stock at $12 per share. Dec.31 During the year, earned $248,400 in cash revenues and paid $175, eee for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a se.se per share dividend on the common stock.
Problem 11-26A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 11-3, 11-6 [The following Information applles to the questions displayed below] Sun Corporation recelved a charter that authorized the Issuance of 85,000 shares of $6 par common stock and 22,000 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 12,750 shares of the $6 par common stock for $8 per share. 12 Sold 2,200 shares of the 4 percent preferred stock for $11e per share. Apr. 5 Sold 17,ee0 shares of the $6 par common stock for $10 per share. Dec. 31 During the year, earned $311,900 in cash revenue and paid $238,400 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 December 31, Year 1. Mar. 3 Sold 3, 300 shares of the $100 par preferred stock for $120 per share. May. 5 Purchased see shares of the common stock as treasury stock at $12 per share. Dec.31 During the year, earned $248,400 in cash revenues and paid $175, eee for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a se.se per share dividend on the common stock.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Requlred Informatlon
Problem 11-26A (Algo) 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 recelved a charter that authorized the Issuance of 85,000 shares of S6 par common stock and 22,000
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 12,750 shares of the $6 par common stock for $8 per share.
12 Sold 2,20e shares of the 4 percent preferred stock for $110 per share.
Apr. 5 Sold 17,000 shares of the $6 par common stock for $18 per share.
Dec. 31 During the year, earned $311,980 in cash revenue and paid $238,400 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 December 31, Year 1.
Mar. 3 Sold 3,300 shares of the $10e par preferred stock for $120 per share.
May. 5 Purchased 500 shares of the common stock as treasury stock at $12 per share.
Dec.31 During the year, earned $248,480 in cash revenues and paid $175,000 for cash operating expenses.
31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d5c8c92-5a65-47bc-9859-d57ea08ed644%2F04a4e088-5463-4791-9427-7d31e81c2db8%2Fz2llq4_processed.png&w=3840&q=75)
Transcribed Image Text:Requlred Informatlon
Problem 11-26A (Algo) 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 recelved a charter that authorized the Issuance of 85,000 shares of S6 par common stock and 22,000
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 12,750 shares of the $6 par common stock for $8 per share.
12 Sold 2,20e shares of the 4 percent preferred stock for $110 per share.
Apr. 5 Sold 17,000 shares of the $6 par common stock for $18 per share.
Dec. 31 During the year, earned $311,980 in cash revenue and paid $238,400 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 December 31, Year 1.
Mar. 3 Sold 3,300 shares of the $10e par preferred stock for $120 per share.
May. 5 Purchased 500 shares of the common stock as treasury stock at $12 per share.
Dec.31 During the year, earned $248,480 in cash revenues and paid $175,000 for cash operating expenses.
31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock.
Transcribed Image Text:Problem 11-26A (Algo) Part a
Requlred
a. Organize the transaction data In accounts under an accounting equation. (Enter any decreases to account balances with a minus
slgn. Not all cells requlre Input.)
SUN CORPORATION
Accounting Equation
Assets
Liabilities
Stockholders' Equity
Paid-in Capital in
Excess of Par -
Paid-in Capital in
Excess of Par -
Event No.
Dividends
Preferred
Common
Stock
Treasury
Stock
Retained
Earnings
Account Titles for
Cash
+
+
Payable
Stock
Preferred Stock
Common Stock
Retained Earnings
Year 1
Jan.5
+
+
+
+
Jan. 12
+
+
+
+
Apr.5
+
+
+
+
Dec.31
=
+
+
+
Dec.31
+
+
+
Dec.31
+
+
Bal.
+
ol +
+
Year 2
Feb. 15
+
Mar.3
+
May.5
+
+
=
+
+
+
Dec.31
+
+
+
+
Dec.31
+
+
+
+
Dec.31
+
+
+
Bal.
+
+
+
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