After 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, $0.50 noncumulative, no par value, 8,000 shares authorized, 1,600 issued $8,000 Common stock, no par value, 80,000 shares authorized, 20,744 issued 20,744 Cookie & Coffee Creations then has the following selected transactions during its first year of operations. 2022 Dec. 1 2023 Apr. 30 June 30 Oct. 31 31 Issues an additional 640 preferred shares to Natalie's brother for $3,200. Declares a semiannual dividend to the preferred stockholders of record on May 15, payable on June 1. Repurchases 600 shares of common stock issued to the lawyer, for $400. Recall that these were originally issued for $600. The lawyer had decided to retire and wanted to liquidate all of her assets. The company has had a very successful first year of operations. It earned revenues of $370,000 and incurred operating expenses of $296,000 (including $600 legal fee, but excluding income tax). 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.