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 par common stock for $7 per share. Dec. 31 During the year, earned $314,200 in cash revenue and paid $240,000 for cash operating expenses. 31 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. 31 Closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,300 shares of the $75 par preferred stock for $95 per share. May 5 Purchased 600 shares of the common stock as treasury stock at $6 per share. Dec. 31 During the year, earned $249,600 in cash revenues and paid $175,600 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock. 31 Closed revenue, expense, and dividend accounts to the retained earnings account.

Required
a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answer to the nearest dollar amount. Select "12/31 cl." for all the closing entries.)

1

Sold 14,400 shares of the $3 par common stock for $5 per share.
2

Sold 2,200 shares of the 4 percent preferred stock for $85 per share.
3

Sold 19,200 shares of the $3 par common stock for $7 per share.
4

Record cash revenue earned.
5

Record payment for operating expenses.
6

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.
7

Record the closing entry for service revenue.
8

Record the closing entry for operating expenses.
9

Record the closing entry for dividends.
10

Paid the cash dividend declared on December 31, Year 1.
11

Sold 3,300 shares of the $75 par preferred stock for $95 per share.
12

Purchased 600 shares of the common stock as treasury stock at $6 per share.
13

Record cash revenue earned.
14

Record payment for operating expenses.
15

Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock.
16

Record the closing entry for revenue accounts.
17

Record the closing entry for operating expenses.
18

Record the closing entry for dividends.

6

Expert Solution

ekkarill92 answered 1 year ago

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 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 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 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 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...

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...

The corporate charter of Alpaca Co. authorized the issuance of 10 million, $1 par common shares....

The corporate charter of Alpaca Co. authorized the issuance of 10 million, $1 par common shares. During 2020, its first year of operations, Alpaca had the following transactions: January 1 sold 8 million shares at $15 per share June 3 retired 2 million shares at $18 per share December 28 sold 2 million shares at $20 per share What amount should Alpaca report as common stock, in its december 31 2020 balance sheet?

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...

Novak Corporation’s charter authorized issuance of 110,000 shares of $10 par value common stock and 49,300...

Novak Corporation’s charter authorized issuance of 110,000 shares of $10 par value common stock and 49,300 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 $10,700, 9% bond payable at par and gave as a bonus one share of preferred stock, which at that time was selling for $97 a share. 2. Issued 480 shares of common stock for equipment. The equipment...

Question