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 $39 cash per share from four individuals and issued 4,900 shares of common stock to each. b. Issued 5,900 shares of common stock to an outside investor at $39 cash per share. c. Issued 7,900 shares of preferred stock at $21 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 $35,000. No dividends were declared. Record the issuance to four individuals of 4,900 shares each of common stock with no par value for a price of $39 per share. Note: Enter debits before credits. Record the issuance to an outside investor of 5,900 shares of common stock with no par value for a price of $39 per share. Note: Enter debits before credits. Journal entry worksheet Record the issuance of 7,900 shares of preferred stock with a par value $10 for a price of $21 per share. Note: Enter debits before credits