E11-5 (Algo) Reporting Stockholders' Equity and Determining Dividend Policy LO11-1, 11-3, 11-4, 11-7

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[The following information applies to the questions displayed below.]

Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $13 par value, 12,100 shares authorized. During the year, the following selected transactions were completed:

a.	Sold 6,900 shares of common stock for cash at $26 per share.
b.	Sold 2,800 shares of common stock for cash at $31 per share.
c.	At year-end, the accounts reflected income of $8,000. No dividends were declared.

E11-5 Part 1

Required:

1. Prepare the journal entries required to record the sale of common stock in (a) and (b). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Prepare the stockholders equity section as it should be reported on the year-end balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Require Tormation E11-5 (Algo) Reporting Stockholders' Equity and Determining Dividend Policy LO11-1, 11-3, 11- 4, 11-7 [The following information applies to the questions displayed below.) Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $13 par value, 12,100 shares authorized. During the year, the following selected transactions were completed: a. Sold 6,900 shares of common stock for cash at $26 per share. b. Sold 2,800 shares of common stock for cash at $31 per share. c. At year-end, the accounts reflected income of $8,000. No dividends were declared. E11-5 Part 1 Required: 1. Prepare the journal entries required to record the sale of common stock in (a) and (b). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet