Higgins Hydraulics Corporation was formed on January 14, 20X1, with a 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.

Record the transactions in general journal form. Prepare the stockholders equity of thebalance sheet as of December31, 20X1. Net income for the year was $92,000, and no dividends were declare. Thus, the retained earnings account has a credit balance of $92,000 as of

December 31.