Required information E11-5 (Algo) Reporting Stockholders' Equity and Determining Dividend Policy L011-1, 11-3, 11-4, 11-7 [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, $18 par value, 13,200 shares authorized. During the year, the following selected transactions were completed:
a. Sold 6,600 shares of common stock for cash at $36 per share. b. Sold 2,500 shares of common stock for cash at $41 per share.
c. At year-end, the accounts reflected income of $6,900. No dividends were declared.