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,

13,500 shares authorized.

During the year, the following selected transactions were completed:

a. Sold 6,800 shares of common stock for cash at $22 per share.

b. Sold 1,400 shares of common stock for cash at $27 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.)

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: Total contributed capital 0 Total stockholders' equity $ 0