Required information

Problem $11-25$A $($Algo$)$ Recording and reporting stock transactions and cash dividends across two accounting cycles LO $11-3,11-6$

$[$The following information applies to the questions displayed below.$]$

Sun Corporation received a charter that authorized the issuance of $106,000$ shares of $$3$ par common stock and $21,000$ shares of $$100$ par, $7$ percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:

Year $1$

January $5$ Sold $15,900$ shares of the $$3$ par common stock for $$5$ per share.

January $12$ Sold $2,100$ shares of the $7$ percent preferred stock for $$110$ per share.

April $5$ Sold $21,200$ shares of the $$3$ par common stock for $$7$ per share.

December $31$ During the year, earned $$301,900$ in cash revenue and paid $$242,500$ for cash operating expenses.

December $31$ 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 $2.$

December $31$ closed the revenue, expense, and dividend accounts to the retained earnings account.

Year $2$

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

March $3$ Sold $3,150$ shares of the $$100$ par preferred stock for $$120$ per share.

May $5$ Purchased $450$ shares of the common stock as treasury stock at $$6$ per share.

December $31$ During the year, earned $$246,300$ in cash revenues and paid $$172,100$ for cash operating expenses.

December $31$ Declared the annual dividend on the preferred stock and a $$0\mathrm{.}25$ per share dividend on the common

December $31$ Closed revenue, expense, and dividend accounts to the retained earnings account.

$?$

Required information

Problem $11-25$A $($Algo$)$ Recording and reporting stock transactions and cash dividends across two accounting cycles LO $11-3,11-6$

$[$The following information applies to the questions displayed below.$]$

Sun Corporation received a charter that authorized the issuance of $106,000$ shares of $$3$ par common stock and $21,000$ shares of $$100$ par, $7$ percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:

Year $1$

January $5$ Sold $15,900$ shares of the $$3$ par common stock for $$5$ per share.

January $12$ Sold $2,100$ shares of the $7$ percent preferred stock for $$110$ per share.

April $5$ Sold $21,200$ shares of the $$3$ par common stock for $$7$ per share.

December $31$ During the year, earned $$301,900$ in cash revenue and paid $$242,500$ for cash operating expenses.

December $31$ 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 $2.$

December $31$ Closed the revenue, expense, and dividend accounts to the retained earnings account.

Year $2$

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

March $3$ Sold $3,150$ shares of the $$100$ par preferred stock for $$120$ per share.

May $5$ Purchased $450$ shares of the common stock as treasury stock at $$6$ per share.

December $31$ During the year, earned $$246,300$ in cash revenues and paid $$172,100$ for cash operating expenses.

December $31$ Declared the annual dividend on the preferred stock and a $$0\mathrm{.}25$ per share dividend on the common stock.

December $31$ Closed revenue, expense, and dividend accounts to the retained earnings account.

Problem $11-25$A $($Algo$)$ Part a