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this is all one question After establishing their company's fiscal year-end to be October 31, Natalie and Curtis begin operating Cookie & Coffee Creations Inc.
this is all one question
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 736 preferred shares to Natalie's brother for $3,680. 2023 Cookie \& Coffee Creations then has the following selected transactions during its first year of operations. Dec. 1 Issues an additional 736 preferred shares to Natalie's brother for $3,680. 2023 Apr. 30 Declares a semiannual dividend to the preferred stockholders of record on May 15, payable on June 1. June 30 Repurchases 690 shares of common stock issued to the lawyer, for $460. Recall that these were originally issued for \$690. 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 $425,500 and incurred operating expenses of $340,400 (including $765 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. Prepare the statement of retained earnings for the year. (List items that increase retained earnings first. If answer is zero, please enter , do not leave any field blank.) Prepare the stockholders' equity section of the balance sheet as of October 31, 2023. (Enter account name only and do not provide descriptive information.) Paid-in Capital Preferred Stock $12880 Common Stock \begin{tabular}{|} \hline 23858 \\ \hline 36738 \end{tabular} Total Paid-in Capital \begin{tabular}{||} \hline \hline 460 \\ \hline \hline 36278 \\ \hline \hline \end{tabular} Total Paid-in Capital and Retained Earnings Prepare closing entries for net income and cash dividends. (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 0 for the amounts. Record journal entries in the order displayed in the problem statement.) Prepare closing entries for net income and cash dividends. (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 O for the amounts. Record journal entries in the order displayed in the problem statement.)Step by Step Solution
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