Toontastic (Free-in app purchases for additional characters/backgrounds) "Making cartoons with Toontastic is as easy as putting on a puppet show - simply press the record button, move your characters onscreen, and tell your stories through play! Once you’re done, Toontastic will play back your animation and voice as a cartoon for you to share with friends and family around the world. Toontastic teaches key storytelling principles that help to promote creativity at a young age."

Puppet Pals (Free-in app purchases for additional characters/backgrounds) Similar to Toontastic, without the story arc or the ability to draw your own characters/backgrounds. However, you can bring in photos. "Simply pick out your actors and backdrops, drag them on to the stage, and tap record. Your movements and audio will be recorded in real time for playback later."

Scribble Press (free) Scribble Press for iPad is a book creation platform that allows kids to imagine, create and share their own stories with great drawing and writing tools. Download your books instantly to your iBooks library. Scribble Press for iPad makes it easy to create an ebook – either write your own or use one of over 50 story templates 

Strip Designer ($2.99)  "Select one of the many included page templates. Insert photos into the cells. Add a couple of balloons with fun words. Add additional effect symbols (stickers) like "Boom", "Splash", or "Bang" to spice up the story. When you are happy with your new graphic novel, share it with friends and family. Photos can be added from the camera, your photo-album, or downloaded directly from your Facebook account. You can apply filters to photos, and change the layout of the page to fit your needs. You can even paint on the photos, or draw your own sketches from scratch."

JibJab Jr. (free, in app purchases for printed books; monthly subscriptions for $3.99) Recommended by Krystal Vanden Heuval, Random Lake: "This app is fun because you are able to create stories using your students' pictures."