prepare the stockholders equity section. (general journal is already completed and correct)

Required information 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, $17 par value, 12,500 shares authorized. During the year, the following selected transactions were completed: a. Sold 5,700 shares of common stock for cash at $34 per share. b. Sold 1,700 shares of common stock for cash at $39 per share. c. At year-end, the accounts reflected income of $7,500. No dividends were declared E11-5 Part 2 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.) TARRANT CORPORATION Balance Sheet (Partial) At December 31, This year Stockholders' equity Contributed capital 2. Prepare the stockholders' equity section as it should be reported on the year-end balance s be indicated by a minus sign.) TARRANT CORPORATION Balance Sheet (Partial) At December 31, This year Stockholders' equity Contributed capital: Total contributed capital $ Total stockholders' equity Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $17 par value, 12,500 shares authorized. During the year, the following selected transactions were completed: a. Sold 5,700 shares of common stock for cash at $34 per share. b. Sold 1,700 shares of common stock for cash at $39 per share. c. At year-end, the accounts reflected income of $7,500. 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.) Answer is complete and correct. No Transaction General Journal Debit Credit Cash a. 193,800 Additional paid-in capital, common stock 96,900 Common stock 96,900 2 Cash b. 66,300 Common stock 28,900 Additional paid-in capital, common stock 37,400