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Sun Corporation received a charter that authorized the issuance of $90,000$ shares of $$3$ par common stock and $19,000$ shares of $$125$ par, $4$ percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:

Year $1$

January $5$ Sold $13,500$ shares of the $$3$ par common stock for $$5$ per share.

$12$ Sold $1,900$ shares of the $4$ percent preferred stock for $$135$ per share.

April $5$ Sold $18,000$ shares of the $$3$ par common stock for $$7$ per share.

December $31$ During the year, earned $$311,900$ in cash revenue and paid $$237,100$ 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 $2.$

Year $2$

February $15$ Paid the cash dividend declared on December $31,$ Year $1.$

March $3$ Sold $2,850$ shares of the $$125$ par preferred stock for $$145$ per share.

May $5$ Purchased $500$ shares of the common stock as treasury stock at $$6$ per share.

December $31$ During the year, earned $$246,600$ in cash revenues and paid $$170,300$ for cash operating expenses.

$31$ Declared the annual dividend on the preferred stock and a $$0\mathrm{.}75$ per share dividend on the common stock.

Required

Organize the transaction data in accounts under an accounting equation.

Prepare the stockholders$$ equity section of the balance sheet at December $31,$ Year $1.$

Prepare the balance sheet at December $31,$ Year $2.\backslash$table$[[$SUN CORPORATION$],[$Accounting Equation$],[$Event$,$Assest,$=,$Liabilities,$+,$Stockholders' Equity,$\backslash$table$[[$Account Titles for$],[$Retained Earnings$]]],[$Cash$,=,\backslash$table$[[$Dividends$],[$Payable$]],+,\backslash$table$[[$Preferred$],[$Stock$]],+,\backslash$table$[[$Common$],[$Stock$]],+,\backslash$table$[[$Paid$-$in$],[$Capital in$],[$Excess$-],[$Preferred$],[$Stock$]],+,\backslash$table$[[$Paid$-$in$],[$Capital in$],[$Excess$-],[$Common$],[$Stock$]],-,\backslash$table$[[$Treasury$],[$Stock$]],+,\backslash$table$[[$Retained$],[$Earnings$]]],[$Year $1],[$January $5,67,500,=,,+,,+,40,500,+,,+,27,000,-,,+,\frac{?}{\text{b}\text{a}\text{r}}(T),],[$January $12,256,500,=,,+,237,500,+,,+,19,000,+,,-,,+,$r$,],[$April $5,382,500,=,,+,,+,54,000,+,,+,126,000,-,,+,\frac{?}{\text{b}\text{a}\text{r}}(T),],[$December $31,311,900,=,,+,,+,,+,,+,,-,,+,311,900,],[$December $31,(237,100),=,,+,,+,,+,,+,,-,,+,(237,100),],[$Balance$,781,300,=,7,600,+,237,500,+,94,500,+,19,000,+,153,000,-,0,+,67,200,],[$Year $2],[$February $15,(7,600),=,(7,600),+,,+,,+,,+,,-,,+,$T$,],[$March $3,413,250,=,,+,356,250,+,,+,57,000,+,,-,,+,\frac{?}{\text{b}\text{a}\text{r}}(1),],[$May $5,(3,000),=,,+,,+,,+,,+,3,000,-,,+,?,],[$December $31,246,600,=,,+,,+,,+,,+,,-,,+,246,600,],[$December $31,(170,300),=,,+,,+,,+,,+,,-,,+,(170,300),],[$December $31,,=,10,125,+,,+,,+,,+,,-,,+,(10,125),],[$Balance$,1,260,250,=,10,125,+,593,750,+,94,500,+,76,000,+,156,000,-,0,+,133,375,]]$

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