Tarrant Corporation was organized this year to operate a financial consulting bu

Question

Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, par value $17 per share, 12,000 shares authorized. During the year, the following selected transactions were completed: Required: 1. Prepare the journal entries required to record the sale of common stock in (a) and (b). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet

Explanation / Answer

2. Stockholder's equity

Contributed capital :

Common stock (12000 share authorised ,$12 par value , issued and outstanding 7800 shares) = $132600

Contributed in excess of par = 138600

Total contribution = $271200

Retained earnings =   $7400

Total stockholder's equity = $278600

Date Accounts title Dr Cr a Cash (6600 * $34) $224400 To paid in capital in excess of par (6600 * $17) 112200 To common stock (6600 * $17) 112200 b. Cash (1200 * $39) 46800 To paid in capital in excess of par (1200 * $22) 26400 To common stock (1200 * $17) 20400

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