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Required Information Problem 8-23 Recording and reporting stock transactions and cash dividends across two accounting cycles LO 8-3, 8-4, 8-5, 8-6 [The following information applies to the questions displayed below.] Sun Corporation received a charter that authorized the issuance of 118,000 shares of $5 par common stock and 21,000 shares of $75 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: 2018 Jan. 5 sold 17,700 shares of the $5 par common stock for $7 per share. 12 Sold 2,100 shares of the 5 percent preferred stock for $85 per share. Apr. 5 sold 23,600 shares of the $5 par common stock for $9 per share. Dec. 31 During the year, earned $312,300 in cash revenue and paid $235,800 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for 2018. The dividend will be paid on February 15 to stockholders of record on January 10, 2019. 2019 Feb. 15 Paid the cash dividend declared on December 31, 2018. Mar. 3 Sold 3,150 shares of the $75 par preferred stock for $95 per share. May. 5 Purchased 450 shares of the common stock as treasury stock at $10 per share. Dec. 31 During the year, earned $250,880 in cash revenues and paid $176,580 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. Problem 8-23 Part a Required a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Indicating to provide separate effect on accounting equation for Revenue, Operating expense, and leave the cell blank if there is no effect.) Sun Corporation Accounting Equation Stockholders' Equity Event Assest = Liabilities Cash Dividends Payable Preferred Stock Common Stock Paid-in Paid-in Capital in Capital in + Excess of + Excess of Preferred Common Stock Stock Treasury Stock Retained Earnings Accounts Titles for Retained Earnings 2018 Jan.5 + + + = + + + + + Jan. 12 Apr.5 + + - + + 1 [ Dec 31 = 1 +1 + Dec.31 + + + . + Dec.31 Bal. 0/= 0 + 0 + 0 + 0 + 01-1 0+ 0 1+1 + + 2019 Feb. 15 Mar 3 May.5 Dec 31 + + + + +1 + +1 +1 + + + + + Dec 31 |+1 | + + Dec.31 + + + 0 + Ball 01 = 0 + 0 + 0 + 0 0+ 0 1