Question

Tarrant Corporation was organized in 2014 to operate a financial consulting business. The charter authorized the following capital stock: common stock, par value $10 per share, 11,500 shares. During the first year, the following selected transactions were completed:
a. Sold and issued 5,600 shares of common stock for cash at $20 per share.
b. Sold and issued 1,000 shares of common stock for cash at $25 per share.
c. At year-end, the accounts reflected income of $12,000.

Required:
1. Give the journal entry required for each of these transactions.
2. Prepare the stockholders’ equity section as it should be reported on the year-end balance sheet.



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  • CreatedJuly 01, 2014
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