Required information [The following information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 106,000 shares of $8 par common stock and 19,000 shares of $75 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of
Required information [The following information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 106,000 shares of $8 par common stock and 19,000 shares of $75 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
106,000 shares of $8 par common stock and 19,000 shares of $75
par, 6 percent cumulative preferred stock. Sun Corporation
completed the following transactions during its first two years of
operation.
Year 1
January 5
January 12
April 5
December 31
December 31 During the year, earned $318,400 in cash
revenue and paid $244,500 for cash operating
expenses.
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
February 15
Sold 15,900 shares of the $8 par common stock
for $10 per share.
Sold 1,900 shares of the 6 percent preferred
Paid the cash dividend declared on December 31,
Year 1.
Sold 2,850 shares of the $75 par preferred
stock for $95 per share.
May 5
Purchased 450 shares of the common stock as
treasury stock at $16 per share.
December 31 During the year, earned $246,700 in cash
revenues and paid $171,000 for cash operating
expenses.
Declared the annual dividend on the preferred
stock and a $0.75 per share dividend on the
common stock.
March 3
stock for $85 per share.
Sold 21,200 shares of the $8 par common stock
for $12 per share.
December 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff542718c-0acb-4890-8169-035335c1114a%2Fdf160a7c-1845-494c-9e1c-8715ea741af4%2F4pfhcdj_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
106,000 shares of $8 par common stock and 19,000 shares of $75
par, 6 percent cumulative preferred stock. Sun Corporation
completed the following transactions during its first two years of
operation.
Year 1
January 5
January 12
April 5
December 31
December 31 During the year, earned $318,400 in cash
revenue and paid $244,500 for cash operating
expenses.
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
February 15
Sold 15,900 shares of the $8 par common stock
for $10 per share.
Sold 1,900 shares of the 6 percent preferred
Paid the cash dividend declared on December 31,
Year 1.
Sold 2,850 shares of the $75 par preferred
stock for $95 per share.
May 5
Purchased 450 shares of the common stock as
treasury stock at $16 per share.
December 31 During the year, earned $246,700 in cash
revenues and paid $171,000 for cash operating
expenses.
Declared the annual dividend on the preferred
stock and a $0.75 per share dividend on the
common stock.
March 3
stock for $85 per share.
Sold 21,200 shares of the $8 par common stock
for $12 per share.
December 31
Transcribed Image Text:a. Prepare the balance sheets at December 31, Year 1 and Year 2.
Note: Amounts to be deducted should be indicated with minus sign.
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