. Problem 11-25A 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 100,000 shares of $10 par common stock and 50,000 shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. S sold 6,000 shares of the $10 par con stock for $15 per share. 12 Sold 1,000 shares of the 5 percent preferred stock for $55 per share. Apr. 5 sold 30,000 shares of the $10 par common stock for $21 per share. Dec. 31 During the year, earned $150,000 in cash revenue and paid $18,000 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 stockholdere of record on January 10, Year 2. Jl closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. NAE. 3 Sold 15,000 shares of the $50 par preferred took for $5) per share. May 5 Purchased 900 shares of the common stock as treasury stock at $24 per share. Dec. 31 During the year, earned $210,000 in cash revenues and paid 598,000 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock 31 Closed revenue, expense, and dividend accounts to the retained earnings account. Problem 11-25A Part a Required a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Select "12/31 cl for all the closing entries.) 13 View transaction list X: 18 ped 1 Sold 6,000 shares of the $10 par common stock for $15 per share. 2 Sold 1,000 shares of the 5 percent preferred stock for $55 per share. ook 3 Sold 30,000 shares of the $10 par common stock for $21 per share. Credit 4 Record cash revenue earned. 3. ances 5 Record payment for operating expenses. 6 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on Note : = journal entry has been entered X ints 18 > Skipped 6 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. eBook 7 Record the closing entry for service revenue. 9 8 Record the closing entry for operating expenses. Ask Credit 9 Record the closing entry for dividends. References 10 Paid the cash dividend declared on December 31, Year 1. 11 Sold 15,000 shares of the $50 par preferred stock for $53 per share. Note :- Journal entry has been entered Record entry Clear entry View general Journal x Part 1 of 3 18 12 Purchased 900 shares of the common stock as treasury stock at $24 per share. 10 points 13 Record cash revenue earned. Skipped 14 Record payment for operating expenses. 15 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. Se Credit Book 16 Record the closing entry for revenue accounts. Ask 17 Record the closing entry for operating expenses. 18 Record the closing entry for dividends. References Note : = journal entry has been entered Record entry Clear entry View general Journal