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 $42 cash per share from four individuals and issued 5,200 shares of common stock to each.
b.	Issued 6,200 shares of common stock to an outside investor at $42 cash per share.
c.	Issued 8,200 shares of preferred stock at $22 cash per share.

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.)

1.Record the issuance to four individuals of 5,200 shares each of common stock with no par value for a price of $42 per share. 2.Record the issuance to an outside investor of 6,200 shares of common stock with no par value for a price of $42 per share. 3.Record the issuance of 8,200 shares of preferred stock with a par value $10 for a price of $22 per share.

Transaction

General Journal

Debit

Credit

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 $38,000. No dividends were declared.