E11-6 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 $38 cash per share from four individuals and issued 4,800 shares of common stock to each b. Issued 5,800 shares of common stock to an outside investor at $38 cash per share c. Issued 7,800 shares of preferred stock at $22 cash per share Required: 1. 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.) View transaction list 1Record the issuance to four individuals of 4,800 shares each of common stock with no par value for a price of $38 per share n stock Record the issuance to an outside investor of 5,800 shares of common stock with no par value for a price of $38 per share 2 3 Record the issuance of 7,800 shares of preferred stock Credit with a par value $10 for a price of $22 per share Note : -journal entry has been entered Record entry Clear entry View general journal 2. Prepare the stockholders' equity section of the balance sheet at Dber 31. At the end of the year, the accounts reflected net income of $34,000. No dividends were declared. AVA SCHOOL Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital Common Stock Preferred Stock Additional Paid-in Capital, Preferred Stock Total Contributed Capital Total Stockholders' Equity