$\frac{-}{1}$

Afte

Cookie & Coffee Creations then has the following selected transactions during its first year of operations.

$2022$

Dec. $1$ Issues an additional $928$ preferred shares to Natalie's brather for $$4,640.$

$2023$

Apr. $30$ Declares a semiannual dividend to the preferred stockholders of record on May $15,$ payable on June $1.$

June $30$ Repurchases $870$ shares of common stock issued to the lawyer, for $$580.$ Recall that these were originally issued for $$870.$ The lawyer had decided to retire and wanted to liquidate all of her assets.

Oct. $31$ The company has had a very successful first year of operations. It earned revenues of $$536,500$ and incurred operating expenses of $$429,200($including $$765$ legal fee, but excluding income tax$).$

$31$ Records income tax expense. $($The company has a $20\%$ income tax rate.$)$

$31$ Declares a semiannual dividend to the preferred stockholders of record on November $15,$ payable on December $1.$

$($a$)$

Prepare the journal entries to record the above transactions. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order displayed in the problem statement.$)$r establishing their company's fiscal year$-$end to be October $31,$ Natalie and Curtis begin operating Cookie & Coffee Creations Inc. on November $1,2022.$ On that date, after the issuance of shares, the paid$-$in capital section of the company's balance sheet is as follows.

Paid$-$in capital

Preferred stock, $$0\mathrm{.}50$ noncumulative, no par value,

$11,600$ shares authorized, $2,320$ issued

$$11,600$

Common stock, no par value, $116,000$ shares

authorized, $30,086$ issued

$30,086$

Cookie & Coffee Creations then has the following selected transactions during its first year of operations.

$2022$

Dec. $1$ Issues an additional $928$ preferred shares to Natalie's brother for $$4,640.$

$2023$

Apr. $30$ Declares a semiannual dividend to the preferred stockholders of record on May $15,$ payable on June $1.$

June $30$ Repurchases $870$ shares of common stock issued to the lawyer, for $$580.$ Recall that these were originally issued for $$870.$ The lawyer had decided to retire and wanted to liquidate all of her assets.

Oct. $31$ The company has had a very successful first year of operations. It earned revenues of $$536,500$ and incurred operating expenses of $$429,200($including $$765$ legal fee, but excluding income tax$).$

$31$ Records income tax expense. $($The company has a $20\%$ income tax rate.$)$