Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $11 par value, 11,900 shares authorized. During the year, the following selected transactions were completed: a. Sold 7,000 shares of common stock for cash at $22 per share. b. Sold 2,200 shares of common stock for cash at $27 per share. c. At year-end, the company reported net Income of $6,100. No dividends were declared. Required: 1. Prepare the journal entries required to record the sale of common stock in (a) and (b).

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**

*[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, $11 par value, 11,900 shares authorized. During the year, the following selected transactions were completed:

a. Sold 7,000 shares of common stock for cash at $22 per share.
b. Sold 2,200 shares of common stock for cash at $27 per share.
c. At year-end, the company reported net income of $6,100. No dividends were declared.

**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.*

---

**Journal Entry Worksheet**

1. Sold 7,000 shares of common stock for cash at $22 per share.

*Note: Enter debits before credits.*

| Transaction | General Journal       | Debit | Credit |
|-------------|-----------------------|-------|--------|
| a.          |                       |       |        |

*Buttons:*
- Record entry
- Clear entry
- View general journal

---

There is no graph or diagram to explain within this content.
Transcribed Image Text:**Required Information** *[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, $11 par value, 11,900 shares authorized. During the year, the following selected transactions were completed: a. Sold 7,000 shares of common stock for cash at $22 per share. b. Sold 2,200 shares of common stock for cash at $27 per share. c. At year-end, the company reported net income of $6,100. No dividends were declared. **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.* --- **Journal Entry Worksheet** 1. Sold 7,000 shares of common stock for cash at $22 per share. *Note: Enter debits before credits.* | Transaction | General Journal | Debit | Credit | |-------------|-----------------------|-------|--------| | a. | | | | *Buttons:* - Record entry - Clear entry - View general journal --- There is no graph or diagram to explain within this content.
**Required Information**

*[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, $11 par value, 11,900 shares authorized. During the year, the following selected transactions were completed:

a. Sold 7,000 shares of common stock for cash at $22 per share.
b. Sold 2,200 shares of common stock for cash at $27 per share.
c. At year-end, the company reported net income of $6,100. No dividends were declared.

**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.*

View transaction list

---

**Journal Entry Worksheet**

Sheet 2:

Transaction: Sold 2,200 shares of common stock for cash at $27 per share.

*Note: Enter debits before credits.*

| Transaction | General Journal | Debit | Credit |
|-------------|-----------------|-------|--------|
| b.          |                 |       |        |

Options:
- Record entry
- Clear entry
- View general journal
Transcribed Image Text:**Required Information** *[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, $11 par value, 11,900 shares authorized. During the year, the following selected transactions were completed: a. Sold 7,000 shares of common stock for cash at $22 per share. b. Sold 2,200 shares of common stock for cash at $27 per share. c. At year-end, the company reported net income of $6,100. No dividends were declared. **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.* View transaction list --- **Journal Entry Worksheet** Sheet 2: Transaction: Sold 2,200 shares of common stock for cash at $27 per share. *Note: Enter debits before credits.* | Transaction | General Journal | Debit | Credit | |-------------|-----------------|-------|--------| | b. | | | | Options: - Record entry - Clear entry - View general journal
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