Prepare the statement of retained earnings for the year. (List items that increase retained earnings first. If answer is zero, please ente 0, do not leave any field blank.) COOKIE & COFFEE CREATIONS INC. Statement of Retained Earnings 24 $4 Prepare the stockholders' equity section of the balance sheet as of October 31,2023. (Enter account name only and do not provide descriptive information.) COOKIE & COFFEE CREATIONS INC. Balance Sheet (Partial ) Stockholders' Equity 2$ 24
Prepare the statement of retained earnings for the year. (List items that increase retained earnings first. If answer is zero, please ente 0, do not leave any field blank.) COOKIE & COFFEE CREATIONS INC. Statement of Retained Earnings 24 $4 Prepare the stockholders' equity section of the balance sheet as of October 31,2023. (Enter account name only and do not provide descriptive information.) COOKIE & COFFEE CREATIONS INC. Balance Sheet (Partial ) Stockholders' Equity 2$ 24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Use the information given to fill out the statement of retained earnings and balance sheet
![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
24
$4
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
24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc12a9231-6197-4689-bf51-975f258ddd95%2F645f785a-6868-4614-bf30-f7e2de33014f%2F0fu6664c_processed.jpeg&w=3840&q=75)
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
24
$4
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
24
![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)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc12a9231-6197-4689-bf51-975f258ddd95%2F645f785a-6868-4614-bf30-f7e2de33014f%2Frrxmyy9_processed.jpeg&w=3840&q=75)
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)
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