Problem 11-26A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 11-3, 11-6 [The following Information applles to the questions displayed below] Sun Corporation recelved a charter that authorized the Issuance of 85,000 shares of $6 par common stock and 22,000 shares of $100 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during Its first two years of operation. Year 1 Jan. 5 Sold 12,750 shares of the $6 par common stock for $8 per share. 12 Sold 2,200 shares of the 4 percent preferred stock for $11e per share. Apr. 5 Sold 17,ee0 shares of the $6 par common stock for $10 per share. Dec. 31 During the year, earned $311,900 in cash revenue and paid $238,400 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 stockholders of record on January 10, Year 2. Year 2 Feb.15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3, 300 shares of the $100 par preferred stock for $120 per share. May. 5 Purchased see shares of the common stock as treasury stock at $12 per share. Dec.31 During the year, earned $248,400 in cash revenues and paid $175, eee for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a se.se per share dividend on the common stock.
Problem 11-26A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 11-3, 11-6 [The following Information applles to the questions displayed below] Sun Corporation recelved a charter that authorized the Issuance of 85,000 shares of $6 par common stock and 22,000 shares of $100 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during Its first two years of operation. Year 1 Jan. 5 Sold 12,750 shares of the $6 par common stock for $8 per share. 12 Sold 2,200 shares of the 4 percent preferred stock for $11e per share. Apr. 5 Sold 17,ee0 shares of the $6 par common stock for $10 per share. Dec. 31 During the year, earned $311,900 in cash revenue and paid $238,400 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 stockholders of record on January 10, Year 2. Year 2 Feb.15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3, 300 shares of the $100 par preferred stock for $120 per share. May. 5 Purchased see shares of the common stock as treasury stock at $12 per share. Dec.31 During the year, earned $248,400 in cash revenues and paid $175, eee for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a se.se per share dividend on the common stock.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 7SPB: STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Dans Hobby Stores had the following...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage