! Required information [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 50,000 shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 6,000 shares of the $10 par common stock for $15 per share. 12 Sold 1,000 shares of the 5 percent preferred stock for $55 per share. Apr. 5 Sold 30,000 shares of the $10 par common stock for $21 per share. Dec. Year 2 Feb. Mar. May Dec. 31 During the year, earned $150,000 in cash revenue and paid $88,000 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. 15 Paid the cash dividend declared on December 31, Year 1. 3 Sold 15,000 shares of the $50 par preferred stock for $53 per share. 5 Purchased 900 shares of the common stock as treasury stock at $24 per share. 31 During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. Required a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)
! Required information [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 50,000 shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 6,000 shares of the $10 par common stock for $15 per share. 12 Sold 1,000 shares of the 5 percent preferred stock for $55 per share. Apr. 5 Sold 30,000 shares of the $10 par common stock for $21 per share. Dec. Year 2 Feb. Mar. May Dec. 31 During the year, earned $150,000 in cash revenue and paid $88,000 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. 15 Paid the cash dividend declared on December 31, Year 1. 3 Sold 15,000 shares of the $50 par preferred stock for $53 per share. 5 Purchased 900 shares of the common stock as treasury stock at $24 per share. 31 During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. Required a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Dinesh
![!
Required information
[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 50,000
shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its
first two years of operation:
Year 1
Jan. 5 Sold 6,000 shares of the $10 par common stock for $15 per share.
12 Sold 1,000 shares of the 5 percent preferred stock for $55 per share.
Apr. 5 Sold 30,000 shares of the $10 par common stock for $21 per share.
Dec.
Year 2
Feb.
Mar.
May
Dec.
31 During the year, earned $150,000 in cash revenue and paid $88,000 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.
15 Paid the cash dividend declared on December 31, Year 1.
3 Sold 15,000 shares of the $50 par preferred stock for $53 per share.
5 Purchased 900 shares of the common stock as treasury stock at $24 per share.
31 During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses.
31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common
stock.
Required
a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus
sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2e17af40-49de-4efd-a939-c0efd2014ca3%2F4c04159a-9338-4ed8-9fea-d2728f027866%2F0l0qx1w_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[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 50,000
shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its
first two years of operation:
Year 1
Jan. 5 Sold 6,000 shares of the $10 par common stock for $15 per share.
12 Sold 1,000 shares of the 5 percent preferred stock for $55 per share.
Apr. 5 Sold 30,000 shares of the $10 par common stock for $21 per share.
Dec.
Year 2
Feb.
Mar.
May
Dec.
31 During the year, earned $150,000 in cash revenue and paid $88,000 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.
15 Paid the cash dividend declared on December 31, Year 1.
3 Sold 15,000 shares of the $50 par preferred stock for $53 per share.
5 Purchased 900 shares of the common stock as treasury stock at $24 per share.
31 During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses.
31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common
stock.
Required
a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus
sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)
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