Required information Problem 11-25A (Algo) Recording and reporting stock transactions and cash dividends across two accounting...
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Required information Problem 11-25A (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 90,000 shares of $7 par common stock and 18,000 shares of $75 par, 5 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 $7 par common stock for $9 per share. January 12 Sold 1,800 shares of the 5 percent preferred stock for $85 per share. April 5 Sold 18,000 shares of the $7 par common stock for $11 per share. December 31 During the year, earned $309,100 in cash revenue and paid $244,400 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 2,700 shares of the $75 par preferred stock for $95 per share.. May 5 Purchased 600 shares of the common stock as treasury stock at $14 per share. December 31 During the year, earned $252,100 in cash revenues and paid $170,700 for cash operating expenses. December 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. December 31 Closed revenue, expense, and dividend accounts to the retained earnings account. Problem 11-25A (Algo) Part a Required a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. 1 of 3 Required information General Journal T Accounts Year 1 T Accounts Year 2 Post the entries to T-accounts Year 2. (Select "12/31 cl. for all the closing entries.) Book Year 2 Drin Beginning Balance Cash Year 2 Dividends Payable Year 21 Beginning Balance erences Ending Balance Ending Balance Retained Earnings Preferred Stock Year 21 Year 21 Beginning Balance Ending Balance: Common Stock Year 21 Beginning Balance Ending Balance Paid-in Capital in Excess of Par-Preferred Stock Year 2 9 Required information choing balance Year 2 Beginning Balance Ending Balance Common Stock Paid-in Capital in Excess of Par-Common Stock Year 2 Beginning Balance choing paiance Year 2 Paid-in Capital in Excess of Par-Preferred Stock Beginning Balance Ending Balance Year 21 Beginning Balance Ending Balance Ending Balance Treasury Stock (Common) Year 21 Year 2 Beginning Balance Beginning Balance Ending Balance Ending Balance Operating Expenses Year 21 Beginning Balance Dividends Service Revenue Required information Problem 11-25A (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 90,000 shares of $7 par common stock and 18,000 shares of $75 par, 5 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 $7 par common stock for $9 per share. January 12 Sold 1,800 shares of the 5 percent preferred stock for $85 per share. April 5 Sold 18,000 shares of the $7 par common stock for $11 per share. December 31 During the year, earned $309,100 in cash revenue and paid $244,400 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 2,700 shares of the $75 par preferred stock for $95 per share.. May 5 Purchased 600 shares of the common stock as treasury stock at $14 per share. December 31 During the year, earned $252,100 in cash revenues and paid $170,700 for cash operating expenses. December 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. December 31 Closed revenue, expense, and dividend accounts to the retained earnings account. Problem 11-25A (Algo) Part a Required a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. 1 of 3 Required information General Journal T Accounts Year 1 T Accounts Year 2 Post the entries to T-accounts Year 2. (Select "12/31 cl. for all the closing entries.) Book Year 2 Drin Beginning Balance Cash Year 2 Dividends Payable Year 21 Beginning Balance erences Ending Balance Ending Balance Retained Earnings Preferred Stock Year 21 Year 21 Beginning Balance Ending Balance: Common Stock Year 21 Beginning Balance Ending Balance Paid-in Capital in Excess of Par-Preferred Stock Year 2 9 Required information choing balance Year 2 Beginning Balance Ending Balance Common Stock Paid-in Capital in Excess of Par-Common Stock Year 2 Beginning Balance choing paiance Year 2 Paid-in Capital in Excess of Par-Preferred Stock Beginning Balance Ending Balance Year 21 Beginning Balance Ending Balance Ending Balance Treasury Stock (Common) Year 21 Year 2 Beginning Balance Beginning Balance Ending Balance Ending Balance Operating Expenses Year 21 Beginning Balance Dividends Service Revenue
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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