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 authorized, 25,930 issued $10,000 25,930 Cookie & Coffee Creations then has the following selected transactions during its hirst year of operations, Dec 1 Issues an additional 800 preferred shares to Natalie's brother for $4.000 Apr. 30 Declares a semiannual dividend to the preferred stockholders of record on May 15, payable on June 1. June 30 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 Oct 31 The company has had a very successful first year of operations. It earned revenues of $462,500 and incurred operating experses of $370,000 Including $750 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 31 Date Account Titles and Explanation Debit Credit > (To record income tax expense) (To record dividend declared)