Prepare the statement of retained earnings for the year. (List items that increase retained earnings first. If answer is zero, please enter 0, do not leave any field blank) COOKIE & COFFEE CREATIONS INC. Statement of Retained Earnings Prepare the stockholders' equity section of the balance sheet as of October 31, 2023. (Enter account name only and do not provide descriptive information) COOKIE & COFFEE CREATIONS INC Balance Sheet (Partial) Stockholders' Equity

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Fill out missing boxes completely
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
Paid-in capital
Preferred stock, $0.50 noncumulative, no par value,
$11.200
11,200 shares authorized, 2,240 issued
Common stock, no par value, 112,000 shares
authorized, 29,048 issued
29,048
Cookie & Coffee Creations then has the following selected transactions during its first year of operations.
2022
Dec. 1
Issues an additional 896 preferred shares to Natalie's brother for $4,480.
2023
Apr. 30
Declares a semiannual dividend to the preferred stockholders of record on May 15, payable on June 1.
Repurchases 840 shares of common stock issued to the lawyer, for $560. Recall that these were originally issued for
$840. The lawyer had decided to retire and wanted to liquidate all of her assets.
June 30
The company has had a very successful first year of operations. It earned revenues of $518,000 and incurred operating
expenses of $414,400 (including $765 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.
Date
ACCount Tities and Explanation
Debit
Creait
122
Dec 1
Cash
4,480
Preferred Stock
4,480
123
Apr. 30
Cash Dividends
784
Dividends Payable
784
June 1
Dividends Payable
784
Cash
784
June 30 v
Treasury Stock
560
Cash
560
Oct. 31
Income Tax Expense
20,720
Income Taxes Payable
20,720
(To record income tax expense)
Oct. 31
Cash Dividends
784
Dividends Payable
784
(To record dividend declared)
Transcribed Image Text: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 Paid-in capital Preferred stock, $0.50 noncumulative, no par value, $11.200 11,200 shares authorized, 2,240 issued Common stock, no par value, 112,000 shares authorized, 29,048 issued 29,048 Cookie & Coffee Creations then has the following selected transactions during its first year of operations. 2022 Dec. 1 Issues an additional 896 preferred shares to Natalie's brother for $4,480. 2023 Apr. 30 Declares a semiannual dividend to the preferred stockholders of record on May 15, payable on June 1. Repurchases 840 shares of common stock issued to the lawyer, for $560. Recall that these were originally issued for $840. The lawyer had decided to retire and wanted to liquidate all of her assets. June 30 The company has had a very successful first year of operations. It earned revenues of $518,000 and incurred operating expenses of $414,400 (including $765 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. Date ACCount Tities and Explanation Debit Creait 122 Dec 1 Cash 4,480 Preferred Stock 4,480 123 Apr. 30 Cash Dividends 784 Dividends Payable 784 June 1 Dividends Payable 784 Cash 784 June 30 v Treasury Stock 560 Cash 560 Oct. 31 Income Tax Expense 20,720 Income Taxes Payable 20,720 (To record income tax expense) Oct. 31 Cash Dividends 784 Dividends Payable 784 (To record dividend declared)
Prepare the statement of retained earnings for the year. (List items that increase retained earnings first. If answer is zero, please enter
0, do not leave any field blank.)
COOKIE & COFFEE CREATIONS INC.
Statement of Retained Earnings
Prepare the stockholders' equity section of the balance sheet as of October 31, 2023. (Enter account name only and do not provide
descriptive information)
COOKIE & COFFEE CREATIONS INC
Balance Sheet (Partial)
Stockholders' Equity
Transcribed Image Text:Prepare the statement of retained earnings for the year. (List items that increase retained earnings first. If answer is zero, please enter 0, do not leave any field blank.) COOKIE & COFFEE CREATIONS INC. Statement of Retained Earnings Prepare the stockholders' equity section of the balance sheet as of October 31, 2023. (Enter account name only and do not provide descriptive information) COOKIE & COFFEE CREATIONS INC Balance Sheet (Partial) Stockholders' Equity
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education