E11-5 (Algo) Reporting Stockholders' Equity and Determining Dividend Policy LO11-1, 11-3, 11-4, 11-7 [The following information applies to the questions displayed below.] Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $10 par value, 13,400 shares authorized. During the year, the following selected transactions were completed: a. Sold 7,200 shares of common stock for cash at $20 per share. b. Sold 2,900 shares of common stock for cash at $25 per share. c. At year-end, the company reported net income of $7,800. No dividends were declared.
E11-5 (Algo) Reporting Stockholders' Equity and Determining Dividend Policy LO11-1, 11-3, 11-4, 11-7 [The following information applies to the questions displayed below.] Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $10 par value, 13,400 shares authorized. During the year, the following selected transactions were completed: a. Sold 7,200 shares of common stock for cash at $20 per share. b. Sold 2,900 shares of common stock for cash at $25 per share. c. At year-end, the company reported net income of $7,800. No dividends were declared.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...
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Required information
E11-5 (Algo) Reporting Stockholders' Equity and Determining Dividend Policy LO11-1, 11-3, 11-4, 11-7
[The following information applies to the questions displayed below.]
Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the
following stock: common stock, $10 par value, 13,400 shares authorized. During the year, the following selected
transac ons were completed:
a. Sold 7,200 shares of common stock for cash at $20 per share.
b. Sold 2,900 shares of common stock for cash at $25 per share.
c. At year-end, the company reported net income of $7,800. No dividends were declared.
E11-5 Part 1
Required:
1. Prepare the journal entries required to record the sale of common stock in (a) and (b).
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Check my](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb756a31f-4c5e-4275-8e1c-2dbf15e870e2%2F3681068e-7bff-415c-b6ae-7803146da1c6%2Fdilxn8_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
E11-5 (Algo) Reporting Stockholders' Equity and Determining Dividend Policy LO11-1, 11-3, 11-4, 11-7
[The following information applies to the questions displayed below.]
Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the
following stock: common stock, $10 par value, 13,400 shares authorized. During the year, the following selected
transac ons were completed:
a. Sold 7,200 shares of common stock for cash at $20 per share.
b. Sold 2,900 shares of common stock for cash at $25 per share.
c. At year-end, the company reported net income of $7,800. No dividends were declared.
E11-5 Part 1
Required:
1. Prepare the journal entries required to record the sale of common stock in (a) and (b).
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Check my
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