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E11-5 (Algo) Reporting Stockholders' Equity and Determining Dividend Policy LO11-1, 11-3, 11-4, 11-7

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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.

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.)