Problem 1 AGH Corporation is authorized to issue 200,000 shares of preferred stock and 1 million shares of common stock. 1. Sold 10,000 shares of 5% preferred stock, $100 par for $125 per share 2. Sold 75,000 shares of $2 par common stock for $18 per share. 3. Issued 5,000 common shares for a patent with an appraised value of $20,000 4. Sold 500 shares of preferred stock at par. REQUIRED: 1. Show the effect of the following transactions on the accounting equation: 2. Record the transactions in T accounts (indicate whether the account is A, L, or SE) 3. Prepare the stockholders' equity section of the balance sheet using the accounts