Sun Corporation received a charter that authorized the issuance of 100,000 shares of $3 par common stock and 21,000 shares of $75 par, 5 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 Year 2 February 15 March 3 May 5 December 31 December 31 Sold 15,000 shares of the $3 par common stock for $5 per share. Sold 2,100 shares of the 5 percent preferred stock for $85 per share. Sold 20,000 shares of the $3 par common stock for $7 per share. During the year, earned $314,800 in cash revenue and paid $239,100 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. Paid the cash dividend declared on December 31, Year 1. Sold 3,150 shares of the $75 par preferred stock for $95 per share. Purchased 450 shares of the common stock as treasury stock at $6 per share. During the year, earned $250,300 in cash revenues and paid $179,900 for cash operating expenses. Declared the annual dividend on the preferred stock and a $0.25 per share dividend on the common stock. Required a. Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all cells require input.
Sun Corporation received a charter that authorized the issuance of 100,000 shares of $3 par common stock and 21,000 shares of $75 par, 5 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 Year 2 February 15 March 3 May 5 December 31 December 31 Sold 15,000 shares of the $3 par common stock for $5 per share. Sold 2,100 shares of the 5 percent preferred stock for $85 per share. Sold 20,000 shares of the $3 par common stock for $7 per share. During the year, earned $314,800 in cash revenue and paid $239,100 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. Paid the cash dividend declared on December 31, Year 1. Sold 3,150 shares of the $75 par preferred stock for $95 per share. Purchased 450 shares of the common stock as treasury stock at $6 per share. During the year, earned $250,300 in cash revenues and paid $179,900 for cash operating expenses. Declared the annual dividend on the preferred stock and a $0.25 per share dividend on the common stock. Required a. Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all cells require input.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer within the format by providing formula the detailed working
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Transcribed Image Text:Sun Corporation received a charter that authorized the issuance of 100,000 shares of $3 par common stock
and 21,000 shares of $75 par, 5 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
Year 2
February 15
March 3
May 5
December 31
December 31
Sold 15,000 shares of the $3 par common stock for $5 per share.
Sold 2,100 shares of the 5 percent preferred stock for $85 per share.
Sold 20,000 shares of the $3 par common stock for $7 per share.
During the year, earned $314,800 in cash revenue and paid $239,100 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.
Paid the cash dividend declared on December 31, Year 1.
Sold 3,150 shares of the $75 par preferred stock for $95 per share.
Purchased 450 shares of the common stock as treasury stock at $6 per share.
During the year, earned $250,300 in cash revenues and paid $179,900 for cash
operating expenses.
Declared the annual dividend on the preferred stock and a $0.25 per share
dividend on the common stock.
Required
a. Organize the transaction data in accounts under an accounting equation.
Note: Enter any decreases to account balances with a minus sign. Not all cells require input.
Transcribed Image Text:Event Number
Year 1
January 5
January 12
April 5
December 31
December 31
December 31
Balance
Year 2
February 15
March 3
May 5
December 31
December 31
December 31
Balance
Assets
Cash
0
0
=
=
=
=
=
=
=
=
=
=
=
=
=
=
11
=
Liabilities
Dividends
Payable
+
+
+
+
+
+
+
0 +
+
+
+
+
+
+
0 +
Preferred
Stock
0
0
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Common
Stock
Accounting Equation
0
O
+
+
+
+
+
+
+
+
+
+
+ +
+
+
Stockholders' Equity
Paid-in Capital in
Excess of Par -
Preferred Stock
0
0
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Paid-in Capital in
Excess of Par -
Common Stock
O
I
Treasury
Stock
0
0
+
+
+
+
+
+
+
+
+
+
+
+
Retained
Earnings
0
Account
Retained
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