E11-6 (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 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: 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 $42,000. No dividends were declared. bok int sk vint Complete this question by entering your answers in the tabs below. Required 1 Required 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 $42,000. No dividends were declared. Contributed Capital Common Stock Preferred Stock AVA SCHOOL Balance Sheet (Partial) At December 31 Stockholders' Equity Additional Paid-In Capital, Preferred Stock Total Contributed Capital 1,334,000 86,000 77 400 Retained Earnings Total Stockholders Equity 1,497,400 42,000 $ 1.539.400