! 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, $12 par value, 13,300 shares authorized. During the year, the following selected transactions were completed: a. Sold 6,900 shares of common stock for cash at $24 per share. b. Sold 2,300 shares of common stock for cash at $29 per share. c. At year-end, the accounts reflected income of $6,500. No dividends were declared. E11-5 Part 1 rices 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.) View transaction list Journal entry worksheet 1 2 Sold 6,900 shares of common stock for cash at $24 per share. Journal entry worksheet > Sold 6,900 shares of common stock for cash at $24 per share. Dobit Credit tes Note: Enter debits before credits. Transaction General Journal a Cash Common stock Additional paid-in capital, common stock 165,600 82.800 Record entry Clear entry View general journal View transaction list Journal entry worksheet ok Sold 2,300 shares of common stock for cash at $29 per share. D int Note: Enter debits before credits. Transaction General Journal Dobit Credit rences b. Record entry Clear entry View general Journal E11-5 Part 2 2. Prepare the stockholders' equity section as it should be reported on the year-end balance sheet. (Amounts to should be indicated by a minus sign.) TARRANT CORPORATION Balance Sheet (Partial) At December 31, This year Stockholders' equity Contributed capital: Common stock Additional pald-in capital nces 0 Total contributed capital 0 Total stockholders' equity