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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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)
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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