Group A Problem 19-1A Objective: To record issuance of common stock and preferred stock and to prepare the stockholders' equity section of a balance sheet Higgins Hydraulics Corporation was formed on January 14, 20X1, with an authorization to issue 10,000 shares of $ 100 par, 10% preferred stock and 50,000 shares of $5 par common stock. The following stock transactions occurred during 20x1 20X1 Jan. 31 Sold 8.000 shares of common stock for cash at $5 per share. Feb. 15 Sold 1,250 shares of preferred stock for cash at $100 per share. Mar. 18 Sold 2,000 shares of common stock for cash at $6 per share. 30 Sold 750 shares of preferred stock for cash at $102 per share. Apr. 13 Issued 2,000 shares of common stock in exchange for equipment with a fair market value of $18,000. Jun. 12 Sold 5,000 shares of common stock for cash at $6.50 per share. 20 Sold 500 shares of preferred stock for cash at $108 per share. Aug1 Sold 10,000 shares of common stock for cash at $6.75 per share. Sold 1,000 shares of preferred stock for cash at $110 per share. Sep. 12 Sold 4.000 shares of common stock for cash at $7.20 per share. Dec. 10 Sold 1,500 shares of preferred stock for cash at $112 per share. 15 Directions: 1. Record the transactions in general journal form. 2. Prepare the Stockholders' Equity section of the balance sheet as of December 31, 20X1. Net income for the year was $92,000, and no dividends were declared. Thus, the Retained Earnings account has a credit balance of $92,000 as of December 31