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Sun Corporation received a charter that authorized the issuance of 100,000 shares of $5 par common stock and 22,000 shares of $125 par, 6 percent cumulative preferred stock.

Sun Corporation received a charter that authorized the issuance of 100,000 shares of $5 par common stock and 22,000 shares of $125 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:

2018

Jan.	5	Sold 15,000 shares of the $5 par common stock for $7 per share.
	12	Sold 2,200 shares of the 6 percent preferred stock for $135 per share.
Apr.	5	Sold 20,000 shares of the $5 par common stock for $9 per share.
Dec.	31	During the year, earned $303,100 in cash revenue and paid $237,400 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 3,300 shares of the $125 par preferred stock for $145 per share.
May.	5	Purchased 500 shares of the common stock as treasury stock at $10 per share.
Dec.	31	During the year, earned $253,300 in cash revenues and paid $171,300 for cash operating expenses.

a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Indicating to provide separate effect on accounting equation for Revenue, Operating expense, and "NA" for no effect.)

Events

2018

jan 5

jan12

apr 5

dec31

dec

bal

2019

feb 15

mar 3

may 5

dec 31

dec31

bal

Sun Corporation

Accounting Equation

Event

Assest

Liabilities

Stockholders’ Equity

Cash

Dividends Payable

Preferred Stock

Common Stock

Paid-in Capital in Excess of Preferred Stock

Paid-in Capital in Excess of Common Stock

–

Treasury Stock

Retained Earnings

Accounts Titles for Retained Earnings

2018

Jan.5

–

Solutions

Expert Solution

Sun Corporation

Accounting Equation

Event

Asset

Liabilities

Stockholder's equity

Cash

Dividends Payable

Preferred stock

Common Stock

Paid in capital in excess of preferred stock

Paid in capital in excess of common stock

Treasury stock

Retained earnings

Accounts Title for retained earnings

2018

Jan-05

$1,05,000

$75,000

$30,000

Jan-12

$2,97,000

$2,75,000

$22,000

Apr-05

$1,80,000

$1,00,000

$80,000

Dec-31

$65,700

Net Income

Dec-31

$16,500

-$16,500

Preferred dividend

Total

$6,47,700

$16,500

$2,75,000

$1,75,000

$22,000

$1,10,000

$49,200

End. Bal

2019.00

Bal. Jan-01

$6,47,700

$16,500

$2,75,000

$1,75,000

$22,000

$1,10,000

$49,200

Beg. Bal

Jul-05

Feb-05

-$16,500

Mar-03

$4,78,500

$4,12,500

$66,000

May-05

-$5,000

$5,000

Dec-31

$82,000

Net Income

Total

$11,86,700

$6,87,500

$1,75,000

$88,000

$1,10,000

$5,000

$1,31,200

End. Bal

ekkarill92 answered 1 year ago

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