View Policies Current Attempt in Progress 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 shares authorized, 2,240 issued $11,200 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. June 30 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. Oct. 31 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). 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.
View Policies Current Attempt in Progress 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 shares authorized, 2,240 issued $11,200 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. June 30 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. Oct. 31 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). 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please solve problem completely. 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
Transcribed Image Text:View Policies
Current Attempt in Progress
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 shares authorized, 2,240 issued
$11,200
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
Oct. 31
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).
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.
Transcribed Image Text:Date
Account Titles and Explanation
Debit
Credit
2022
2023
(To record income tax expense)
(To record dividend declared)
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