Sun received a charter that authorized the issuance of 100,000 shares of $10 par and 50,000 shares of $50 par, 5 percent cumulative preferred stock. Sun completed the following transactions during its first two years of operation:
2018
Jan. 5 Sold 6,000 shares of the $10 par 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 for $21 per share.
Dec. 31 During the year, earned $150,000 in cash revenue and paid $88,000 for cash operating expenses.
31 Declared the cash on the outstanding shares of preferred stock for 2018. The will be paid on February 15 to stockholders of record on January 10, 2019.
2019
Feb. 15 Paid the cash declared on December 31, 2018.
Mar. 3 Sold 15,000 shares of the $50 par preferred stock for $53 per share.
May 5 Purchased 900 shares of the as treasury stock at $24 per share.
Dec. 31 During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses.
31 Declared the annual on the preferred stock and a $0.50 per share on the common stock.
Required
a. Organize the transaction data in accounts under an accounting equation.
b. Prepare the stockholders’ equity section of the at December 31, 2018.
c. Prepare the at December 31, 2019.
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