Question

Input the correct numbers for debit and credit. Account names are given.

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, $10 par value, 13,400 shares authorized. During the year, the following selected transactions were completed: a. Sold 6,400 shares of common stock for cash at $20 per share. b. Sold 2,800 shares of common stock for cash at $25 per share. c. At year-end, the accounts reflected income of $6,300. No dividends were declared. 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.) View transaction list View journal entry worksheet Debit Credit No 1 Transaction a. General Journal Cash Common stock Additional paid-in capital, common stock 2 b. Cash Common stock Additional paid-in capital, common stock

Answer 1

no	transaction	general journal	debit	credit
1	a.	cash	128,000
		.........To common stock		64,000
		.........To additional paid - in capital common stock		64,000
		(amount: cash = 6400*$20 =>$128,000, common stock = $10 par value *6400=>$64,000 , additional paid in capital :$10*6400=>$64,000)
2	b	cash	70,000
		........To common stock		28,000
		........To additional paid in capital, common stock		42,000
		(amount :cash = 2800*$25=>70,000...common stock:$10*2500 =>$25,000, additional paid in capital:($25-10)=>$15*2800=>$42,000)