Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $15 par value, 12,100 shares authorized. During the year, the following selected transactions were completed:

1. Sold 6,700 shares of common stock for cash at $30 per share.
2. Sold 2,000 shares of common stock for cash at $35 per share.
3. At year-end, the company reported net income of $7,200. No dividends were declared.

1. Prepare the journal entries required to record the sale of common stock in (a) and (b).

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.