Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $12 par value, 12,200 shares authorized. During the year, the following selected transactions were completed:

a.	Sold 6,800 shares of common stock for cash at $24 per share.
b.	Sold 1,700 shares of common stock for cash at $29 per share.
c.	At year-end, the accounts reflected income of $7,700. No dividends were declared.

1. Prepare journal entries for a and b. 2. Prepare the stockholders equity section as it should be reported on the year-end balance sheet.