Question
In: Accounting
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
31
bal
2019
feb 15
mar 3
may 5
dec 31
dec 31
dec31
bal
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | = | + | + | + | + | - | + | $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 | = | -$16,500 | + | + | + | + | - | + | ||||||||
| Mar-03 | $4,78,500 | = | + | $4,12,500 | + | + | $66,000 | + | - | + | |||||||
| May-05 | -$5,000 | = | + | + | + | + | - | $5,000 | + | ||||||||
| Dec-31 | $82,000 | = | + | + | + | + | - | + | $82,000 | Net Income | |||||||
| Total | $11,86,700 | $0 | $6,87,500 | $1,75,000 | $88,000 | $1,10,000 | $5,000 | $1,31,200 | End. Bal | ||||||||
ekkarill92 answered 2 years agoRelated Solutions
Sun Corporation received a charter that authorized the issuance of 89,000 shares of $6 par common stock and 20,000 shares of $100 par, 8 percent cumulative preferred stock
Sun Corporation received a charter that authorized the issuance of 89,000 shares of $6 par common stock and 20,000 shares of $100 par, 8 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:
2016
Jan.
5
Sold 13,350 shares of the $6 par common stock for $8 per share.
12
Sold 2,000 shares of the 8 percent preferred stock for $110 per share.
Apr.
5
Sold 17,800 shares of the $6...
Sun Corporation received a charter that authorized the issuance of 107,000 shares of $6 par common...
Sun Corporation received a charter that authorized the issuance
of 107,000 shares of $6 par common stock and 19,000 shares of $125
par, 5 percent cumulative preferred stock. Sun Corporation
completed the following transactions during its first two years of
operation:
Year 1 Jan. 5 Sold 16,050 shares of the $6 par common stock for
$8 per share. 12 Sold 1,900 shares of the 5 percent preferred stock
for $135 per share. Apr. 5 Sold 21,400 shares of the $6...
Sun Corporation received a charter that authorized the issuance of 101,000 shares of $6 par common...
Sun Corporation received a charter that authorized the issuance
of 101,000 shares of $6 par common stock and 20,000 shares of $100
par, 7 percent cumulative preferred stock. Sun Corporation
completed the following transactions during its first two years of
operation:
Year 1
Jan.
5
Sold 15,150 shares of the $6 par common stock for $8 per
share.
12
Sold 2,000 shares of the 7 percent preferred stock for $110 per
share.
Apr.
5
Sold 20,200 shares of the $6...
Sun Corporation received a charter that authorized the issuance of 118,000 shares of $6 par common...
Sun Corporation received a charter that authorized the issuance
of 118,000 shares of $6 par common stock and 19,000 shares of $100
par, 8 percent cumulative preferred stock. Sun Corporation
completed the following transactions during its first two years of
operation:
2018
Jan.
5
Sold 17,700 shares of the $6 par
common stock for $8 per share.
12
Sold 1,900 shares of the 8 percent
preferred stock for $110 per share.
Apr.
5
Sold 23,600 shares of the $6 par...
Sun Corporation received a charter that authorized the issuance of 93,000 shares of $4 par common...
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...
Sun Corporation received a charter that authorized the issuance of 96,000 shares of $3 par common...
Sun Corporation received a charter that authorized the issuance
of 96,000 shares of $3 par common stock and 22,000 shares of $75
par, 4 percent cumulative preferred stock. Sun Corporation
completed the following transactions during its first two years of
operation: Year 1 Jan. 5 Sold 14,400 shares of the $3 par common
stock for $5 per share. 12 Sold 2,200 shares of the 4 percent
preferred stock for $85 per share. Apr. 5 Sold 19,200 shares of the
$3...
P8-23 (modified) Sun Corporation received a charter that authorized the issuance of 100,000 shares of $10...
P8-23 (modified)
Sun Corporation received a charter that authorized the issuance
of 100,000 shares of $10 par common stock and 50,000 shares of $50
par, 5 percent cumulative preferred stock. Sun Corporation
completed the following transactions during its first year of
operations. Record these transactions in the horizontal statements
model provided below.
Jan 5
Sold 6,000 shares of the $10 par common stock for $15 per
share.
Jan 12 Sold
1,000 shares of the 5 percent preferred stock for $55...
Shamrock Corporation’s charter authorized issuance of 100,000 shares of $10 par value common stock and 53,400...
Shamrock Corporation’s charter authorized issuance of 100,000
shares of $10 par value common stock and 53,400 shares of $50
preferred stock. The following transactions involving the issuance
of shares of stock were completed. Each transaction is independent
of the others.
1.
Issued a $9,500, 9% bond
payable at par and gave as a bonus one share of preferred stock,
which at that time was selling for $103 a share.
2.
Issued 480 shares of common
stock for equipment. The equipment...
Bruno Corporation is authorized to 20,000 shares of 6%, $100 par, cumulative, convertible preferred stock and...
Bruno Corporation is authorized to 20,000 shares of 6%, $100
par, cumulative, convertible preferred stock and 100,000 shares,
$10 par value common stock. Bruno has outstanding 6,000 shares of
preferred stock and 40,000 shares of common stock on the December
31, 2019 balance sheet. The following are selected transactions
that occurred in 2020:
1. Bruno Corporation owes shares of Naple Corporation. At
December 31, 2019, the securities were carried in Bruno’s
accounting records at the cost of $875,000 which equaled...
Martinez Corporation’s charter authorized issuance of 91,000 shares of $10 par value common stock and 53,700...
Martinez Corporation’s charter authorized issuance of 91,000
shares of $10 par value common stock and 53,700 shares of $50
preferred stock. The following transactions involving the issuance
of shares of stock were completed. Each transaction is independent
of the others.
1. Issued a $10,500, 9% bond payable at par and gave as a bonus
one share of preferred stock, which at that time was selling for
$107 a share.
2. Issued 470 shares of common stock for equipment. The
equipment...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What experience have you had with Organization Development or with Change Management? Describe the organization, the...
- 1. Renfro Rentals has issued bonds that have a 12% coupon rate, payable semiannually. The bonds...
- Given an array of positive integers a, your task is to calculate the sum of every...
- Define “culture.” Software is defined by the Merriam-Webster Dictionary as "the programs that run on a...
- In humans, hypotrichosis (sparse body hair) is a rare autosomal recessive condition. Let h = hypotrichosis...
- Increase all of the listing prices by 5% for all listings under $500,000 and 10% for...
- Samsung Industry that requires you to act as a change agent to form an organizational change...
ADVERTISEMENT