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Question - Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, par value $15 per share, 13,400 shares authorized. During the year, the following selected transactions were completed:
a. Sold and issued 6,100 shares of common stock for cash at $30 per share.
b. Sold and issued 1,800 shares of common stock for cash at $35 per share.
c. At year-end, the accounts reflected income of $7,700. No dividends were declared.
Required:
1. Prepare the journal entries required to record the sale of common stock in (a) and (b).
2. Prepare the stockholders' equity section as it should be reported on the year-end balance sheet.
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