Ava School of Learning obtained a charter at the start of the year that authoriz

Question

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 $50 cash per share from four individuals and issued 6,000 shares of common stock to each. b. Issued 7,000 shares of common stock to an outside investor at $50 cash per share c. Issued 9,000 shares of preferred stock at $15 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 view general journal Transaction General Journal Debit Credit Cash 508,400 Common Stock 508,400 Cash 158,100 Common Stock 158,100 Cash 113,600 71,000 42,600 Preferred Stock Additional Paid-in Capital, Preferred Stock

Explanation / Answer

1. Ava School of Learning:

2. Stockholders' Equity Section of Balance Sheet:

Chemfast Corporation:

Transaction no. Account Titles Debit Credit $ $ a. Cash 1,200,000 Common stock 1,200,000 b. Cash 350,000 Common stock 350,000 c. Cash 135,000 Preferred stock 90,000 Additional paid-in capital-preferred stock 45,000

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