C Secure I https://new connect.mheducation.com/flow/connect.html ::: Apps Ro k m

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C Secure I https://new connect.mheducation.com/flow/connect.html ::: Apps Ro k marks Down nad music, m- Ru utemame Rlackboard earn The Ricklist Watch O "atm Ma es Onlir HRU Port -Top 100 M ies of A How to Dr etNa e Tool TH2 w r Rase l my it k Chap 8 Prob 23 6 Help Save & Exit Submit Saved Check my work The following information applies to the questions displayed below.j Sun Corporation received a charter that authorized the issuance of 118,000 shares of $7 par common stock and 19,000 shares of $100 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Part 3 of 3 2018 an. 5 Sold 17,70 shares of the $7 par common stock for $9 per share 12 Sold 1,980 shares of the 6 percent preferred stock for $110 per share 10 poinls Apr. 5 Sold 23,680 shares of the $7 par common stock for $11 per share Dec. 31 During the year, earned $301,5e0 in cash revenue and paid $237,760 for cash operating expenses 31 Declared the cash dividend on the outstanding shares of preferred stock for 2818 cBook The dividend will be paid on February 15 to stockholders of record on January 18, 2019 2019 Feb. 15 Paid the cash dividend declared on December 31, 2018 Mar. 3 Sold 2,850 shares of the $1e8 par preferred stock for $120 per share May. 5 Purchased 50 shares of the common stock as treasury stock at $14 per share Dec. 31 During the year, earned $254,98e in cash revenues and paid $174,888 for cash operating expenses 31 Declared the annual dividend on the preferred stock and a $9.50 per share dividend on the common stock Mc Hill O Type here to search ^4x ENG 11/25/a 1125/201717

Explanation / Answer

Account Title Debit Credit 2018 5-Jan Cash (17700*9) 159300 Common stock(17700*7) 123900 Paid-in-capital in excess of Par-common stock (17700*2) 35400 12 Cash (1900*110) 209000 Preferred stock(1900*100) 190000 Paid-in-capital in excess of Par-Preferred stock(1900*10) 19000 Apr. 5 Cash (23600*11) 259600 Common stock(23600*7) 165200 Paid-in-capital in excess of Par-common stock (23600*4) 94400 31-Dec Cash 301500 Operating Revenues 301500 Operating Expenses 237700 Cash 237700 Operating Revenues 301500 Operating Expenses 237700 Retained Earnings 63800 Retained earnings 11400 Preferred dividends payable(190000*6%) 11400 2019 15-Feb Preferred dividends payable(190000*6%) 11400 Cash 11400 3-Mar Cash (2850*120) 342000 Preferred stock(2850*100) 285000 Paid-in-capital in excess of Par-Preferred stock(2850*20) 57000 5-May Treasury stock(500*14) 7000 Cash 7000 31-Dec Cash 254900 Operating Revenues 254900 Operating Expenses 174800 Cash 174800 Operating Revenues 254900 Operating Expenses 174800 Retained Earnings 80100 Retained earnings 31800 Preferred dividends payable(190000*6%) 11400 Common stock dividends payable(17700+23600-500)*0.50 20400 2556800 2556800 NET LEDGER BAL LEDGER ACCOUNTS Debit Credit Debit Credit 31-Dec Cash 237700 15-Feb Cash 11400 5-May Cash 7000 31-Dec Cash 174800 31-Dec Cash 301500 31-Dec Cash 254900 5-Jan Cash (17700*9) 159300 12-Jan Cash (1900*110) 209000 Apr. 5 Cash (23600*11) 259600 3-Mar Cash (2850*120) 342000 1095400 31-Dec Common stock dividends payable(17700+23600-500)*0.50 20400 20400 5-Jan Common stock(17700*7) 123900 Apr. 5 Common stock(23600*7) 165200 289100 31-Dec Operating Expenses 237700 31-Dec Operating Expenses 237700 31-Dec Operating Expenses 174800 31-Dec Operating Expenses 174800 0 31-Dec Operating Revenues 301500 31-Dec Operating Revenues 301500 31-Dec Operating Revenues 254900 31-Dec Operating Revenues 254900 0 Paid-in-capital in excess of Par-common stock (17700*2) 35400 Paid-in-capital in excess of Par-common stock (23600*4) 94400 129800 Paid-in-capital in excess of Par-Preferred stock(1900*10) 19000 3-Mar Paid-in-capital in excess of Par-Preferred stock(2850*20) 57000 76000 31-Dec Preferred dividends payable(190000*6%) 11400 15-Feb Preferred dividends payable(190000*6%) 11400 31-Dec Preferred dividends payable(190000*6%) 11400 11400 12-Jan Preferred stock(1900*100) 190000 3-Mar Preferred stock(2850*100) 285000 475000 31-Dec Retained Earnings 63800 31-Dec Retained earnings 11400 31-Dec Retained Earnings 80100 31-Dec Retained earnings 31800 100700 5-May Treasury stock(500*14) 7000 7000 2556800 2556800 1102400 1102400 Trial balance of entries as at Dec.31,2019 Cash 1095400 Common stock dividends payable 20400 Common stock 289100 Paid-in-capital in excess of Par-common stock 129800 Paid-in-capital in excess of Par-Preferred stock 76000 Preferred dividends payable 11400 Preferred stock 475000 Retained Earnings 100700 Treasury stock 7000 Total 1102400 1102400 Balance Sheet as at Dec 31, 2019 Assets Current assets Cash 1095400 Total assets 1095400 Liabilities & Equity Liabilities Current Liabilities Common stock dividends payable 20400 Preferred dividends payable 11400 31800 Equity Common stock 289100 Paid-in-capital in excess of Par-common stock 129800 Preferred stock 475000 Paid-in-capital in excess of Par-Preferred stock 76000 Retained Earnings 100700 Less:Treasury stock -7000 1063600 Total Liabilities & Equity 1095400

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