Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: Collected $44 cash per share from four individuals and issued 5,400 shares of common stock to each. Issued 6,400 shares of common stock to an outside investor at $44 cash per share. Issued 8,400 shares of preferred stock at $24 cash per share.

Required: Prepare the stockholders equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $40,000. No dividends were declared

AVA SCHOOL Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital Total Contributed Capital 0 $ Total Stockholders' Equity 10