ced: 6,700 shares of commor 3,000 shares of commo
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Tarrant Corporation was organized this year to operate a financial consulting
business. The charter authorized the following stock: common stock, $18 par value,
12,500 shares authorized. During the year, the following selected transactions were
completed:
a. Sold 6,700 shares of common stock for cash at $36 per share.
b. Sold 3,000 shares of common stock for cash at $41 per share.
c. At year-end, the company reported net income of $7,100. No dividends were
declared.
2. Prepare the stockholders' equity section of the balance sheet at the end of the year.
Note: Amounts to be deducted should be indicated by a minus sign.
Stockholders' equity
Contributed capital:
Common stock
TARRANT CORPORATION
Balance Sheet (Partial)
At December 31, This year
Total contributed capital
Total stockholders' equity
A
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdead88a2-0ef7-48c9-8d78-426ba1780967%2F0009b058-8199-44ff-8a4a-7be5cf65da71%2Fpscgt4s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tarrant Corporation was organized this year to operate a financial consulting
business. The charter authorized the following stock: common stock, $18 par value,
12,500 shares authorized. During the year, the following selected transactions were
completed:
a. Sold 6,700 shares of common stock for cash at $36 per share.
b. Sold 3,000 shares of common stock for cash at $41 per share.
c. At year-end, the company reported net income of $7,100. No dividends were
declared.
2. Prepare the stockholders' equity section of the balance sheet at the end of the year.
Note: Amounts to be deducted should be indicated by a minus sign.
Stockholders' equity
Contributed capital:
Common stock
TARRANT CORPORATION
Balance Sheet (Partial)
At December 31, This year
Total contributed capital
Total stockholders' equity
A
0
0
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