After establishing their company's fiscal year-end to be October 31, Natalie and Curtis began operating Cookie & Coffee Creations Inc. on November 1, 2024. The company had the following selected transactions during its first fiscal year of operations. The new corporation is authorized to issue 50,000 shares of $1 par common stock and 10,000 shares of no par, $6 cumulative preferred stock. Jan. 1 Issued an additional 800 preferred shares to Natalie's brother for $4,000 cash. Oct. 15 Oct. 31 The company had a very successful first year of operations and as a result declared dividends of $28,000, payable November 15, 2025. The company earned revenues of $472,500 and incurred expenses of $416,500 (excluding income tax). Record income tax expense, assuming the company has a 20% income tax rate. Your answer is correct. Prepare the journal entries to record each of the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Jan. 1 Cash Preferred Stock Oct. 15 Cash Dividends Dividends Payable Oct. 31 Income Tax Expense Income Taxes Payable Debit 4000 28000 11200 Credit 4000 28000 11200 Your answer is correct. Prepare the retained earnings statement for the year ended October 31, 2025. (List items that increase retained earnings first. Do not leave any answer field blank. Enter O for amounts.) COOKIE & COFFEE CREATIONS INC. Retained Earnings Statement For the Year Ended October 31, 2025 Balance, November 1, 2024 Add : Net Income/(Loss) Less Cash Dividends Balance, October 31, 2025 $ List of Accounts Using multiple attempts will impact your score. 10% score reduction after attempt 2 0 44800 44800 28000 i 16800 Attempts: 1 of 3 used Stockholders' Equity Paid-in Capital Capital Stock Preferred Stock Common Stock Total Paid-in Capital Retained Earnings Total Stockholders' Equity COOKIE & COFFEE CREATIONS INC. Partial Balance Sheet October 31, 2025 +A 60000 50000 +A +A $ 110000 16800