The following information applies to the questions displeyed below Tarrant Corpo

Question

The following information applies to the questions displeyed below Tarrant Corporation was organized this year to operate a financial consulting business. The charter suthorized the following stock: common authorized. During the year, the following selected transactions were completed: stock, par value $18 per shere, 12,000 shares a Sold and Issued 6,800 shares of common stock for cash et $36 per share. b. Sold and Issued 2,500 shares of common stock for cash at $41 per share C. At year-end, the accounts reflected Income of $6,200. No dividends were declared 5. Required: 1. Prepare the journal entries required to record the sale of common stock in (a) and (b) (f no entry is required for a account field transactionment, select "No journal entry required" in the first View transaction list Journal entry worksheet

Explanation / Answer

a Cash 244800 (6800*36)             Common stock 122400 (6800*18)             Paid in capital in excess - common stock 122400 b Cash 102500 (2500*41)             Common stock 45000 (2500*18)             Paid in capital in excess - common stock 57500 (2500*23) c Balance sheet Stockholders equity Contributed capital Common stock 167400 Paid in capital in excess common stock 179900 Total contributed capital 347300 Retained earnings 6200 Total stockhiolders equity 353500

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