After establishing their company's fiscal year-end to be October 31, Natalie and Curtis begin operating Cookie & Coffee Creations Inc. on November 1, 2020. 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. 10,000 shares authorized 2,000 issued Common stock, no par value, 100,000 shares $10,000 authorized, 25.930 issued 25,930 Cookie & Coffee Creations then has the following selected transactions during its first year of operations. Dec. 1 Apr. 30 June 30 Issues an additional 800 preferred shares to Natalie's brother for $4.000. Declares a semiannual dividend to the preferred stockholders of record on May 15, payable on June 1 Repurchases 750 shares of common stock issued to the lawyer, for $500. Recall that these were originally issued for $750. 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 $462,500 and incurred operating expenses of $370,000 (including $750 legal fee, but excluding income tax). Oct. 31 Cookie & Coffee Creations then has the following selected transactions during its first year of operations. Dec. 1 Apr. 30 June 30 Issues an additional 800 preferred shares to Natalie's brother for $4,000. Declares a semiannual dividend to the preferred stockholders of record on May 15, payable on June 1. Repurchases 750 shares of common stock issued to the lawyer, for $500. Recall that these were originally issued for $750. 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 $462,500 and incurred operating expenses of $370,000 (including $750 legal fee, but excluding income tax). Oct. 31 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. Prepare closing entries. (Use Operating Expenses and Income Tax Expense as the only expense accounts.) (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 for the amounts. Record journal entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit ct. 31 Sales Revenue 462500 Income Summary 462500 (To close revenue account) Sct. 31 Income Summary 370000 Operating Expenses 369250 INC Income Tax Expense 750 (To close expense accounts) Sct. 31 Gash Dividends 1400 Dividends Payable 1400