! Required Information [The following Information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 109,000 shares of $5 par common stock and 20,000 shares of $125 par. 8 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 16,350 shares of the $5 par common stock for $7 per share. January 12 Sold 2,000 shares of the 8 percent preferred stock for $135 per share. April 5 Sold 21,800 shares of the $5 par common stock for $9 per share. December 31 During the year, earned $382,300 in cash revenue and paid $238,900 for cash operating expenses. December 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. December 31 Closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 February 15 Paid the cash dividend declared on December 31, Year 1. March 3 Sold 3,000 shares of the $125 par preferred stock for $145 per share. May 5 Purchased 550 shares of the common stock as treasury stock at $10 per share. December 31 During the year, earned $251,500 in cash revenues and paid $176,800 for cash operating expenses. December 31 Declared the annual dividend on the preferred stock and a $0.25 per share dividend on the common stock. December 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. Complete this question by entering your answers in the tabs below. General T Accounts T Accounts
! Required Information [The following Information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 109,000 shares of $5 par common stock and 20,000 shares of $125 par. 8 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 16,350 shares of the $5 par common stock for $7 per share. January 12 Sold 2,000 shares of the 8 percent preferred stock for $135 per share. April 5 Sold 21,800 shares of the $5 par common stock for $9 per share. December 31 During the year, earned $382,300 in cash revenue and paid $238,900 for cash operating expenses. December 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. December 31 Closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 February 15 Paid the cash dividend declared on December 31, Year 1. March 3 Sold 3,000 shares of the $125 par preferred stock for $145 per share. May 5 Purchased 550 shares of the common stock as treasury stock at $10 per share. December 31 During the year, earned $251,500 in cash revenues and paid $176,800 for cash operating expenses. December 31 Declared the annual dividend on the preferred stock and a $0.25 per share dividend on the common stock. December 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. Complete this question by entering your answers in the tabs below. General T Accounts T Accounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required Information
[The following information applies to the questions displayed below.]
Sun Corporation received a charter that authorized the issuance of 109,000 shares of $5 par common stock and 20,000
shares of $125 par, 8 percent cumulative preferred stock. Sun Corporation completed the following transactions during its
first two years of operation.
Year 1
January 5 Sold 16,350 shares of the $5 par common stock for $7 per share.
January 12 Sold 2,000 shares of the 8 percent preferred stock for $135 per share.
April 5 Sold 21,800 shares of the $5 par common stock for $9 per share.
December 31 During the year, earned $302,300 in cash revenue and paid $238,900 for cash operating expenses.
December 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.
December 31 Closed the revenue, expense, and dividend accounts to the retained earnings account.
Year 2
February 15 Paid the cash dividend declared on December 31, Year 1.
March 3 Sold 3,000 shares of the $125 par preferred stock for $145 per share.
May 5 Purchased 550 shares of the common stock as treasury stock at $10 per share.
December 31 During the year, earned $251,500 in cash revenues and paid $176,800 for cash operating expenses.
December 31 Declared the annual dividend on the preferred stock and a $0.25 per share dividend on the common stock.
December 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.
Complete this question by entering your answers in the tabs below.
General
Journal
T Accounts T Accounts
Year 1
Year 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39aaaf62-97aa-4ae3-a469-210d02ef1488%2Fbd7822ce-1476-4bd0-9078-fe8e926ea455%2F11z127o_processed.png&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 109,000 shares of $5 par common stock and 20,000
shares of $125 par, 8 percent cumulative preferred stock. Sun Corporation completed the following transactions during its
first two years of operation.
Year 1
January 5 Sold 16,350 shares of the $5 par common stock for $7 per share.
January 12 Sold 2,000 shares of the 8 percent preferred stock for $135 per share.
April 5 Sold 21,800 shares of the $5 par common stock for $9 per share.
December 31 During the year, earned $302,300 in cash revenue and paid $238,900 for cash operating expenses.
December 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.
December 31 Closed the revenue, expense, and dividend accounts to the retained earnings account.
Year 2
February 15 Paid the cash dividend declared on December 31, Year 1.
March 3 Sold 3,000 shares of the $125 par preferred stock for $145 per share.
May 5 Purchased 550 shares of the common stock as treasury stock at $10 per share.
December 31 During the year, earned $251,500 in cash revenues and paid $176,800 for cash operating expenses.
December 31 Declared the annual dividend on the preferred stock and a $0.25 per share dividend on the common stock.
December 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.
Complete this question by entering your answers in the tabs below.
General
Journal
T Accounts T Accounts
Year 1
Year 2
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