Problem $8-23$A $($Algo$)$ Recording and reporting stock transactions and cash dividends across two accounting cycles LO $8-3,8-4,8-5,8-6$

Sun Corporation received a charter that authorized the issuance of $110,000$ shares of $$5$ par common stock and $20,000$ shares of $$75$ par, $7$ percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:

Year $1$

Jan. $5$ Sold $16,500$ shares of the $$5$ par common stock for $$7$ per share.

$12$ Sold $2,000$ shares of the $7$ percent preferred stock for $$85$ per share.

Apr. $5$ Sold $22,000$ shares of the $$5$ par common stock for $$9$ per share.

Dec. $31$ During the year, earned $$315,300$ in cash revenue and paid $$241,800$ 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 $2$

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

Mar. $3$ Sold $3,000$ shares of the $$75$ par preferred stock for $$95$ per share.

May $5$ Purchased $550$ shares of the common stock as treasury stock at $$10$ per share.

Dec. $31$ During the year, earned $$248,500$ in cash revenues and paid $$172,700$ for cash operating expenses.

$31$ Declared the annual dividend on the preferred stock and a $$0\mathrm{.}50$ per share dividend on the common stock.

Required

a$.$ Organize the transaction data in accounts under an accounting equation.

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

c$.$ Prepare the balance sheet at December $31,$ Year $2.$