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 $ 40 cash per share from four individuals and issued...

Req 1 a Cash 5000 shares x 4 x 40 800000 Common Stock 800000 b Cash 60 ...

Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares

Question:

Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par and 20,000 shares of preferred stock, $ 10. During the year, the following selected transactions occurred:
a. Collected $ 40 cash per share from four individuals and issued 5,000 shares of to each.
b. Issued 6,000 shares of to an outside investor at $ 40 cash per share.
c. Issued 8,000 shares of preferred stock at $ 20 cash per share.
Required:
1. Give the journal entries indicated for each of these transactions.
2. Prepare the stockholders’ equity section of the at December 31. At the end of the year, the accounts reflected net income of $ 36,000. No dividends were declared.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...