E$11-6($Algo$)$ Recording and Reporting Stockholders' Equity Transactions $[$LO $11-2,$ LO $11-4]$

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 $$48$ cash per share from four individuals and issued $5,800$ shares of common stock to each.

Issued $6,800$ shares of common stock to an outside investor at $$48$ cash per share.

Issued $8,800$ shares of preferred stock at $$17$ cash per share.

Required:

Prepare the journal entries indicated for each of these transactions.

Prepare the stockholders$$ equity section of the balance sheet at December $31.$ At the end of the year, the accounts reflected net income of $$44,000.$ No dividends were declared.