Sun Corporation received a charter that authorized the issuanceof 96,000 shares of $3 par...

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Accounting

Sun Corporation received a charter that authorized the issuanceof 96,000 shares of $3 par common stock and 22,000 shares of $75par, 4 percent cumulative preferred stock. Sun Corporationcompleted the following transactions during its first two years ofoperation: Year 1 Jan. 5 Sold 14,400 shares of the $3 par commonstock for $5 per share. 12 Sold 2,200 shares of the 4 percentpreferred 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 cashoperating expenses. 31 Declared the cash dividend on theoutstanding shares of preferred stock for Year 1. The dividend willbe paid on February 15 to stockholders of record on January 10,Year 2. 31 Closed the revenue, expense, and dividend accounts tothe retained earnings account. Year 2 Feb. 15 Paid the cashdividend declared on December 31, Year 1. Mar. 3 Sold 3,300 sharesof the $75 par preferred stock for $95 per share. May 5 Purchased600 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 annualdividend on the preferred stock and a $0.75 per share dividend onthe common stock. 31 Closed revenue, expense, and dividend accountsto the retained earnings account.
Required
a. Prepare journalentries for these transactions for Year 1 and Year 2and post them to T-accounts. (Ifno entry is required for a transaction/event, select "No journalentry required" in the first account field. Round your intermediatecalculations 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 pershare.
2
Sold 2,200 shares of the 4 percent preferred stock for $85 pershare.
3
Sold 19,200 shares of the $3 par common stock for $7 pershare.
4
Record cash revenue earned.
5
Record payment for operating expenses.
6
Declared the cash dividend on the outstanding shares ofpreferred stock for Year 1. The dividend will be paid on February15 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 pershare.
12
Purchased 600 shares of the common stock as treasury stock at $6per share.
13
Record cash revenue earned.
14
Record payment for operating expenses.
15
Declared the annual dividend on the preferred stock and a $0.75per 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

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In: AccountingSun Corporation received a charter that authorized the issuanceof 96,000 shares of $3 par common...Sun Corporation received a charter that authorized the issuanceof 96,000 shares of $3 par common stock and 22,000 shares of $75par, 4 percent cumulative preferred stock. Sun Corporationcompleted the following transactions during its first two years ofoperation: Year 1 Jan. 5 Sold 14,400 shares of the $3 par commonstock for $5 per share. 12 Sold 2,200 shares of the 4 percentpreferred 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 cashoperating expenses. 31 Declared the cash dividend on theoutstanding shares of preferred stock for Year 1. The dividend willbe paid on February 15 to stockholders of record on January 10,Year 2. 31 Closed the revenue, expense, and dividend accounts tothe retained earnings account. Year 2 Feb. 15 Paid the cashdividend declared on December 31, Year 1. Mar. 3 Sold 3,300 sharesof the $75 par preferred stock for $95 per share. May 5 Purchased600 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 annualdividend on the preferred stock and a $0.75 per share dividend onthe common stock. 31 Closed revenue, expense, and dividend accountsto the retained earnings account.Requireda. Prepare journalentries for these transactions for Year 1 and Year 2and post them to T-accounts. (Ifno entry is required for a transaction/event, select "No journalentry required" in the first account field. Round your intermediatecalculations and final answer to the nearest dollar amount. Select"12/31 cl." for all the closing entries.) 1Sold 14,400 shares of the $3 par common stock for $5 pershare.2Sold 2,200 shares of the 4 percent preferred stock for $85 pershare.3Sold 19,200 shares of the $3 par common stock for $7 pershare.4Record cash revenue earned.5Record payment for operating expenses.6Declared the cash dividend on the outstanding shares ofpreferred stock for Year 1. The dividend will be paid on February15 to stockholders of record on January 10, Year 2.7Record the closing entry for service revenue.8Record the closing entry for operating expenses.9Record the closing entry for dividends.10Paid the cash dividend declared on December 31, Year 1.11Sold 3,300 shares of the $75 par preferred stock for $95 pershare.12Purchased 600 shares of the common stock as treasury stock at $6per share.13Record cash revenue earned.14Record payment for operating expenses.15Declared the annual dividend on the preferred stock and a $0.75per share dividend on the common stock.16Record the closing entry for revenue accounts.17Record the closing entry for operating expenses.18Record the closing entry for dividends.6