DP edited 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:

a$.$ Collected $$43$ cash per share from four individuals and issued $5,300$ shares of common stock to each.

b$.$ Issued $6,300$ shares of common stock to an outside investor at $$43$ cash per share.

c$.$ Issued $8,300$ shares of preferred stock at $$23$ cash per share.

Required:

Prepare the journal entries indicated for each of these transactions.