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.

Jun sold 5,000 shares of common stock for cash at $6.50 per share.

Sold 500 shares of preferred stock for cash at $108 per share.