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, \$11 par value, 12,200 shares authorized, During the year, the following selected transactions were completed: a. Sold 7,200 shares of common stock for cash at $22 per share. b. Sold 1,600 shares of common stock for cash at $27 per share. c. At year-end, the company reported net income of $6,300. No dividends were declared. E11-5 Part 2 2. Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated by a minus sign