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:

a.	Collected $50 cash per share from four individuals and issued 6,000 shares of common stock to each.
b.	Issued 7,000 shares of common stock to an outside investor at $50 cash per share.
c.	Issued 9,000 shares of preferred stock at $15 cash per share.

2.	Prepare the stockholders equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $46,000. No dividends were declared.