Question

Sun Corporation received a charter that outhorized the issuance of 94,000 shares of $3 par common stock and 21,000 shares of $75 par 4 percent cumulative preferred stock Sun Corporation completed the following transactions during its first two years of operation: 2018 Jan. 5 Sold 14,100 shares of the $3 par common stock for $5 per share. 12 Sold 2,180 shares of the 4 percent preferred stock for $85 per share. Apr. 5 Sold 18,880 shares of the $3 par common stock for $7 per share. Dec.31 During the year, earned $302,580 in cash revenue and paid $242,500 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, 158 shares of the $75 par preferred stock for $95 per share. May. 5 Purchased 500 shares of the common stock as treasury stock at $6 per share. Dec.31 During the year, earned $247,500 in cash revenues and paid $174.809 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $.50 per share dividend on the common stock.

Answer 1

The company Sun Corporation had Equity shares of 94000 out of which it sold 14100 shares. Remaining shares is 79900 shares.

It had prefereed shares of 21000, out of which it sold 20900 shares. Remaining shares is 100 shares.

Hence, total shareholder's Equity = 79900*3 = 2,39,700

Total Paid up capital = 100*75=7500+239700 = 247200