I need help with just part A which is ONE question thank you attached is instructions and and the excel papers thanks :) IcC11CONTINUING CASE: COOKIE CREATIONSCC11 (Continued)C11 (Continued)Part 2The assets held by each of their businesses will be transferred intothe corporation at current market value. Curtis will receive 10,550common shares, and Natalie will receive 14,630 common shares in thecorporation. Therefore, the shares have a fair value of $1 per share.Natalie and Curtis are very excited about this new business venture.After establishing their company's fiscal year-end to be October 31,Natalie and Curtis begin operating Cookie & Coffee Creations Inc. onNovember 1, 2023. On that date, after the issuance of shares, the paid-incapital section of the company's balance sheet is as follows.Natalie and her friend Curtis Lesperance decide that they can benefit fromjoining Cookie Creations and Curtis's coffee shop. In the first part of thisproblem, they come to you with questions about setting up a corporationfor their new business. In the second part of the problem, they want yourhelp in preparing financial information following the first year of operationsof their new business, Cookie & Coffee Creations.questions:1. "Curtis's dad and Natalie's grandmother are interested ininvesting $5,000 each in the business venture. We are thinking ofThey come to you with the followingPaid-in capitalPreferred stock, $0.50 noncumulative, no par value,10,000 shares authorized, 2,000 shares issuedCommon stock, no par value, 100,000 sharesauthorized, 25,930 shares issued$10,000issuing them preferred shares. What would be the advantage ofissuing them preferred shares instead of common shares?"2. "Our lawyer has sent us a bill for $750. When we discussed the billher, she indicated that she would be willing to receivePart 1Curtis has operated his coffee shop for 2 years. He buys coffee, muffins,cookies from a local supplier. Natalie's business consists of givingcookie-mpking classes and selling fine European mixers. The plan is forNatalie to use the premises Curtis currently rents to give her cookie-making classes and demonstrations of the mixers that she sells. Nataliewill also hire, train, and supervise staff to bake the cookies and muffinssold in the coffee shop. By offering her classes on the premises, Nataliewill save on travel time going from one place to another. Anotheradvantage is that the coffee shop will have one central location for sellingthe mixers.25,930common shares in our new corporation instead of cash for herCookie & Coffee Creations then has the following selected transactionsservices. We would be happy to issue her shares, but we're a bitduring its first year of operations.worried about accounting for this transaction. Can we do this? Ifso, how do we determine how many shares to give her?"Dec.Issues an additional 800 preferred shares to Natalie'sbrother for $4,000.Apr. 30Declaressemiannual dividendtothe preferredaInstructions(a) Answer their questions.(b) Prepare the journal entries required on November 1, 2023, the datewhen Natalie and Curtis transfer the assets of their respectivestockholders of record on May 15, payable on June 1.Repurchases 750 shares of common stock issued to thelawyer, for $500. Recall that these were originally issuedfor $750. The lawyer had decided to retire and wanted toliquidate all of her assets.June 30The current market values of the assets of both businesses are asfollows.businesses into Cookie & Coffee Creations Inc.Curtis's Coffee(c) Assume that Cookie & Coffee Creations Inc. issues 1,000 $0.50Oct. 31company has had a very successful first year ofoperations. It earned revenues of $462,500 and incurredexpenses of $364,050 (including $750 legal fee, butexcluding income tax).Records income tax expense. (The company has a 20%Cookie CreationsThenoncumulative preferred shares to Curtis's dad and the samenumber to Natalie's grandmother, in both cases for $5,000. AlsoCash$7,500$11,630Accounts receivable100800InventoryEquipment4501,200assume that Cookie & Coffee Creations Inc. issues 750 commonshares to its lawyer. Prepare the journal entries for each of thesetransactions. They all occurred on November 1.2,5001,000*31*Cookie Creations decided not to buy the delivery van considered inChapter 9.(d) Prepare the opening balance sheet for Cookie & Coffee CreationsInc. as of November 1, 2023, including the journal entries in (b) and(c) above.income tax rate.)Declaresstockholders of record on November 15, payable on31asemiannual dividendtothe preferredDecember 1.Combining forces will also allow Natalie and Curtis to pool theirresources and buy a few more assets to run their new business venture.Curtis and Natalie then meet with a lawyer and form a corporation onInstructions(a) Prepare the journal entries to record the above transactions.November 1, 2023, called Cookie & Coffee Creations Inc. The articles ofincorporation state that there will be two classes of shares that thecorporation is authorized to issue: common shares and preferred shares.They authorize 100,000 no-par shares of common stock, and 10,000 no-parshares of preferred stock with a $0.50 noncumulative dividend.(b) Prepare the retained earnings statement for the year.(c) Prepare the stockholders' equity section of the balance sheet as ofOctober 31.(d) Prepare closing entries.Copyright © 2020 Jahn Wiley & Sons, Inc. NA Financial Accounting, 11e, Continuing Case: Coakie Creations(For instructor Use Oniy)Copyright © 2020 Jahn Wiley & Sons, Inc.NANA Financial Accounting, 11e, Continuing Case: Coakie Creations(For Inatructor Use Only)© 2020 John W iley & Sons, Inc. All rights reserved. No part of this publication m ay be reproduced, atored in a retrieval syatem, or tranamitted,in any form ar by any means, electronie, mechanical, pha tocopying, recording or otherwise, except as permitted by law. Advice an how toobtain permisasion to reuse this material is available at htlp/www.wiley.com igo/permiasions.11-211-3 Nar.CC11 ContinuedSectionDateCookie & Coffee Creations Inc.(d)Cookie & Coffee Creations Inc.Balance SheetNovember 1, 2023Assets2233414567789819101011Stockholders' Equity111212131415||16171819201314151617181920212122232223242526||2728||293024252627282930313132333435333435363738||39403637383940

Solution: Part A: a) i) Preference Shares are one of the financial instrument, preferred shares are…

Instructions () Answer their questions. (b) Prepare the journal entries required on November 1, 2023, the date when Natale and Curtis transfer the assets of their respective businesses inte Cookie & Coffee Creations Inc. (e) Assume that Cookie & Coffee Creations Inc. issues 1,000 s0.50 noncumulative preferred shares to Curtis's dad and the same number to Natalie's grandmother, in both cases for $5,000. Also assume that Cookie & Coffee Creations Inc. issues 750 common