<> Question 1 of 5 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 fırst 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.
<> Question 1 of 5 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 fırst 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.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 41E: Exercise 1-41 Stockholders Equity OBJECTIVE o On January 11 2019, Mulcahy Manufacturing Inc., a...
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Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select, “No entry” for the accounts titles and enter 0 for the amounts. Record journal entries in the order displayed in the problem
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