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Required information

E$11-5($Algo$)$ Reporting Stockholders' Equity and Determining Dividend Policy L$011-1,11-3,11-4,11-7$

$[$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, $$10$ par value, $13,400$ shares authorized. During the year, the following selected

transactions were completed:

a$.$ Sold $7,200$ shares of common stock for cash at $$20$ per share.

b$.$ Sold $2,900$ shares of common stock for cash at $$25$ per share.

c$.$ At year$-$end, the company reported net income of $$7,800.$ No dividends were declared.

E$11-5$ Part $1$

Required:

Prepare the journal entries required to record the sale of common stock in $($a$)$ and $($b$).$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.