The following information applies to the questions displayed below.]

Tarrant Corporation was organized in 2011 to operate a financial consulting business. The charter authorized the following capital stock: common stock, par value $17 per share, 13,100 shares. During the first year, the following selected transactions were completed:

a.	Sold and issued 5,800 shares of common stock for cash at $34 per share.
b.	Sold and issued 2,400 shares of common stock for cash at $39 per share.
c.	At year-end, the accounts reflected a $6,000 loss. Because a loss was incurred, no income tax expense was recorded.

Required:

1.	Give the journal entry required for the above transactions.(Omit the "$" sign in your response.)

Transaction	General Journal	Debit	Credit
a.	(Click to select)Common stockPreferred stockCashCapital in excess of par, common stockTreasury stockCapital in excess of par, treasury stockDividends payableRetained earnings
	(Click to select)Preferred stockCashCapital in excess of par, common stockCapital in excess of par, treasury stockDividends payableCommon stockRetained earningsTreasury stock
	(Click to select)Capital in excess of par, treasury stockDividends payableCapital in excess of par, common stockTreasury stockRetained earningsPreferred stockCommon stockCash
b.	(Click to select)Common stockCapital in excess of par, treasury stockRetained earningsPreferred stockCapital in excess of par, common stockCashTreasury stockDividends payable
	(Click to select)Capital in excess of par, treasury stockDividends payablePreferred stockCapital in excess of par, common stockTreasury stockRetained earningsCommon stockCash
	(Click to select)Capital in excess of par, treasury stockCapital in excess of par, common stockCommon stockCashRetained earningsDividends payableTreasury stockPreferred stock

2.	Prepare the stockholders' equity section as it should be reported on the year-end balance sheet.(Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

Stockholders' Equity
Contributed capital:
(Click to select)Retained earningsPreferred stockTreasury stockContributed capital in excess of parCommon stock	$
(Click to select)Treasury stockRetained earningsCommon stockPreferred stockContributed capital in excess of par
Total contributed capital
(Click to select)Treasury stockContributed capital in excess of parRetained earningsPreferred stockCommon stock
Stockholders' equity	$

3.	Should the company pay dividends at this time?
	Yes No