Question

Sun Corporation received a charter that authorized the issuance of 93,000 shares of $4 par common stock and 21,000 shares of $75 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:

2018

Jan.	5		Sold 13,950 shares of the $4 par common stock for $6 per share.
	12		Sold 2,100 shares of the 6 percent preferred stock for $85 per share.
Apr.	5		Sold 18,600 shares of the $4 par common stock for $8 per share.
Dec.	31		During the year, earned $310,800 in cash revenue and paid $240,700 for cash operating expenses.
	31		Declared the cash dividend on the outstanding shares of preferred stock for 2018. The dividend will be paid on February 15 to stockholders of record on January 10, 2019.

2019

Feb.	15		Paid the cash dividend declared on December 31, 2018.
Mar.	3		Sold 3,150 shares of the $75 par preferred stock for $95 per share.
May.	5		Purchased 450 shares of the common stock as treasury stock at $8 per share.
Dec.	31		During the year, earned $245,900 in cash revenues and paid $175,900 for cash operating expenses.
	31		Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock.

2. Prepare the stockholders’ equity section of the balance sheet at December 31, 2018.

SUN CORPORATION
December 31, 2018
Stockholders’ equity
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Total paid-in capital	0
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Total stockholders’ equity	$0

3. Prepare the balance sheets at December 31, 2019. (Negative amount should be indicated by a minus sign.)

SUN CORPORATION
Balance Sheet
As of December 31, 2019
Assets
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Total assets		$0
Liabilities
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Total liabilities		$0
Stockholders’ equity
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not attempted	not attempted
not attempted	not attempted
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not attempted	not attempted
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Total paid-in capital	0
not attempted	not attempted
not attempted	not attempted
Total stockholders’ equity		0
Total liabilities and stockholders’ equity		$0

Answer 1

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	Balance sheet (partial)
	Sun Corporation
	Shareholders' Equity for 2018
	Shareholders' Equity	Amount $
	Common shares (32,550 no of shares at $ 4 per shares)	130,200
	6 % Preferred shares (2,100 no of shares at $ 75 per shares)	157,500
	Paid in capital in excess of par value- Common shares	102,300
	Paid in capital in excess of par value- Preferred shares	21,000
	Total paid in capital		411,000
	Retained Earning		60,650
	Total paid in capital and retained earning		471,650
	Treasury Stock
	Treasury stock-preferred shares
	Treasury stock-common shares
	Paid in capital in excess of par value- Preferred treasury shares
	Total Shareholders' Equity		471,650
	Balance sheet
	Sun Corporation
	As of 2019
	Asset
	Cash		796,463
	Total asset		796,463
	Liabilities
	Stockholders' Equty
	Common shares (32,550 no of shares at $ 4 per shares)	130,200
	6 % Preferred shares (5,250 no of shares at $ 75 per shares)	393,750
	Paid in capital in excess of par value- Common shares	102,300
	Paid in capital in excess of par value- Preferred shares	84,000
	Total paid in capital		710,250
	Retained Earning		82,613
	Total paid in capital and retained earning		792,863
	Treasury Stock
	Treasury stock-common shares		3,600
	Total Shareholders' Equity		796,463