Cate Corp. was organized on March 1, 2019, 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 2019 follow.

INSTRUCTIONS
1. Set up the following general ledger accounts:

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 Cate Corp., as of March 31, 2019.

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

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Paid-in Capital in Excess of Stated 101 Cash 114 Subscriptions Receivable-Common Stock 115 Subscriptions Receivable-Preferred Stock 301 Common Stock 302 Common Stock Subscribed 305 Value-Common Preferred Stock 311 312 Preferred Stock Subscribed Paid-in Capital in Excess of Par 315 Value-Preferred 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. Issued 400 shares of common stock for cash at $107 to Carolyn Reed. 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. 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. 14 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. LO LO