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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

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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 $40 cash per share from four individuals and issued 5,000 shares of common stock to each b Issued 6,000 shares of common stock to an outside investor at $40 cash per share. - c issued 8,000 shares of preferred stock at $20 cash per share Required: 1. Prepare the journal entries indicated for each of these transactions 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 $36,000. No dividends were declared. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries indicated for each of these transactions. If no entry is required for a transaction/everit, select "No Journal Entry Required in the first account field.) View transaction list > Journal entry worksheet Record the issuance to four individuals of 5,000 shares each of common stock with no par value for a price of $40 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal Journal entry worksheet Record the issuance to an outside investor of 6,000 shares of common stock with no par value for a price of $40 per share. Note: Enter debits before credits. General Journal Transaction b Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the issuance of 8,000 shares of preferred stock with a par value $10 for a price of $20 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

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