Jaguar Corporation was organized on March 1, 2016, to operate a delivery service. The firm is authorized

Question:

Jaguar Corporation was organized on March 1, 2016, to operate a delivery service. The firm is authorized to issue 75,000 shares of no-par-value common stock with a stated value of $100 per share and 30,000 shares of $100 par-value, 8 percent preferred stock that is nonparticipating and noncumulative. Selected transactions that took place during March 2016 follow.

Instructions

1. Set up the following general ledger accounts:

101 Cash

114 Subscriptions Receivable-Common Stock

115 Subscriptions Receivable-Preferred Stock

301 Common Stock

302 Common Stock Subscribed

305 Paid-in Capital in Excess of Stated Value-Common

311 Preferred Stock

312 Preferred Stock Subscribed

315 Paid-in Capital in Excess of Par Value-Preferred

Record in general journal form the transactions listed below, and post them to the general ledger accounts.

2. Prepare the Stockholders' Equity section of a balance sheet for Jaguar Corporation, as of March 31, 2016.

DATE __TRANSACTIONS

March 1 The corporation received its charter. (Make a memorandum entry.)

1 Issued 650 shares of common stock for cash at $100 per share to Jerri Harris.

3 Issued 400 shares of preferred stock for cash at par value to Gloria Amos.

5 Issued 400 shares of common stock for cash at $107 to Carolyn Reed.

5 Received a subscription for 450 shares of common stock at $106 per share from Joan Patterson, payable in two installments due in 10 and 20 days.

14 Received a subscription for 300 shares of preferred stock at $109 per share from Robert Tolliver, payable in two installments due in 15 and 30 days.

20 Received payment of a stock subscription installment due from Joan Patterson (one-half of the purchase price-see March 5 transaction).

29 Received payment of a stock subscription installment due from Robert Tolliver (one-half the purchase price-see March 14 transaction).

30 Received the balance due on the stock subscription of March 5 from Joan Patterson; issued the stock.

Analyze: What percentage of total stockholders' equity is held by common stockholders?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...