Question

i honeslty do not know what the questions is aski g me to do there i need help where its red! thank you

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 99,000 shares of $7 par common stock and 18.000 shares of $100 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: 2018 Jan. 5 Sold 14,850 shares of the $7 par common stock for $9 per share. 12 Sold 1,880 shares of the 5 percent preferred stock for $110 per share. Apr. 5 Sold 19,800 shares of the $7 par common stock for $11 per share. Dec. 31 During the year, earned $314,700 in cash revenue and paid $243,800 operating expenses. 31 Declared the cash dividend on the outstanding shares of The dividend will be paid on February 15 to 2019. 2018 2019 Feb. 15 Paid the cash dividend declared on December 31, 2018 Mar. 3 Sold 2,700 shares of the $1ee par preferred stock for $120 May. 5 Purchased see shares of the common stock as treasury stock at Dec. 31 During the year, earned $252,6ee in cash revenues and paid $170,5ee operating expenses. 31 Declared the annual dividend on the preferred stock and a $0, dividend on the common stock. tock at $14 per share

Answer 1

JASSETS = LIABILITIES + DIVIDENDS PAYABLET Cash Date PREFERRED STOCK STOCKHOLDER'S EQUITY PAID IN CAP P AID IN CAP EXCESS OF EXCESS OF C.S. COMMON STOCK TREASURY STOCK RETAINED EARNINGS I 29,700.00 2018 Jan-05 Jan-12 Apr-05 Dec-31 Dec-31 Dec-31 $ 1,33,650.00 $ 1,98,000.00 $ 2,17,800.00 $ 3,14,700.00 $ -2,43,800.00 = = = = = = = $ - $ . $ - $ - - $ 9,000.00 $ 9,000.00 $ - $ 1,80,000.00 $ - $ - $ - $ $ 1,80,000.00 + + + + + $ 1,03,950.00 $ $ 1,38,600.00 $ . + + + + + $ - $ 18,000.00 $ - $ - $ + + + + $ $ $ S + + + + + 79,200.00 - - - - $ $ $ $ $ - - - - - - + $ + $ + $ 3,14,700.00 + $ -2,43,800.00 + $ -9,000.00 + $ 61,900.00 Bal $ 6,20,350.00 + $ 2,42,550.00 + $ 18,000.00 + $ 1,08,900.00 - + $ - + $ 54,000.00 2019 Feb-15 Mar-03 May-05 Dec-31 Dec-31 Dec-31 $ 9,000.00 $ 3,24,000.00 $ -7,000.00 $ 2,52,600.00 | $ -1,70,500.00 = = = = $ -9,000.00 $ $ . $ - $ - $ 46,237.50 $ 46,237.50 + + + + + $ 2,70,000.00 $ $ - $ - $ $ 4,50,000.00 + - $ 7,000.00 - S - + 1 - $ - - $ . + $ 108,900.00 - $ 7,000.00 + + $ - + $ + $ 72,000.00 + + $ 2,52,600.00 + $ -1,70,500.00 + $ - 46,237.50 + $ 97,762.50 Bal $10,10,450.00 = + $ 2,42,550.00

Dividends for the date March 31, 2019 are calculated as:

SUN CORPORATION Stockholder's Equity Paid in Capital in Excess of par - common Stock Paid in Capital in Excess of par preferred Stock Common Stock Preferred Stock $ 1,08,900.00 $ 72,000.00 S 2,42,550.00 $ 4,50,000.00 $ . $ 8,73,450.00 $ 97,762.50 S $ 9,71,212.50 Total Paid in capital Retained Earnings Total Stockholder's Equity BALANCE SHEET ASSETS CURRENT ASSETS Cash $ 10,10,450.00 Total Assets $ 10, 10,450.00 LIABILITIES & EQUITY SEQUITY LIABILITIES Dividends Payable $ $ 46,237.50 . $ 46,237.50 Total Liabilities STOCKHOLDER'S EQUITY Paid in Capital in Excess of par - common Stock Paid in Capital in Excess of par - preferred Stock Common Stock Preferred Stock $ $ $ $ 1,08,900.00 72,000.00 2,42,550.00 4,50,000.00 $ Total Paid in capital Retained Earnings Less: Treasury Stock (Common) Total Stockholder's Equity Total Liabilities and Shareholder's Equity $ 8,73,450.00 $ 97,762.50 $ 7,000.00 S 9,64,212.50 $ 10,10,450.00

Common stock : 34,650 shares @ $0.75 = $25,987.50

Preferred stock issued last year : 1,800 shares @ 5% = $9,000

Preferred stock issued this year : 2,700 shares @ 5% for 10 months = $11,250

Total : $46,237.50

Notes:

1. The negative amounts are red colored for your understanding.
2. Please read the numbers carefully (with commas).