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 $$46$ cash per share from four individuals and issued $5,600$ shares of common stock to each.

b$.$ Issued $6,600$ shares of common stock to an outside investor at $$46$ cash per share.

c$.$ Issued $8,600$ shares of preferred stock at $$19$ cash per share.

Required:

Prepare the journal entries indicated for each of these transactions.

Prepare the stockholders' equity section of the balance sheet at December $31.$ At the end of the year, the accounts

reflected net income of $$42,000.$ No dividends were declared.

Complete this question by entering your answers in the tabs below.

Prepare the journal entries indicated for each of these transactions. $($If no entry is required for a

transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

Record the issuance to four individuals of $5,600$ shares

each of common stock with no par value for a price of

$$46$ per share.

Note: Enter debits before credits.