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. Cookie \& Coffee Creations then has the following selected transactions during its first year of operations. 2022 Dec. 1 Issues an additional 800 preferred shares to Natalie's brother for $4,000. 2023 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 expenses of $370,000 (including $750 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. Instructions (1) Prepare the journal entries to record the above transactions. (2) Prepare the stockholders' equity section of the balance sheet as of October 31, 2023. 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. Cookie \& Coffee Creations then has the following selected transactions during its first year of operations. 2022 Dec. 1 Issues an additional 800 preferred shares to Natalie's brother for $4,000. 2023 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 expenses of $370,000 (including $750 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. Instructions (1) Prepare the journal entries to record the above transactions. (2) Prepare the stockholders' equity section of the balance sheet as of October 31, 2023