Natalie and her friend Curtis Lesperance decide that they can benefit from joining Cookie Creations and Curtis's coffee shop. In this part of the problem, they want your help in preparing financial information following the first year of operations of their new business, Cookie & Coffee Creations. After establishing their company's fiscal year-end to be October 31, Natalie and Curtis begin operating Cookie & Coffee Creations Inc. on November 1, 2020. 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, 10,000 shares authorized, 2,000 shares issued $10,000 Common stock, no par value, 100,000 shares authorized, 25,930 shares issued 25,930 Cookie & Coffee Creations then has the following selected transactions during its first year of operations. Dec. 1 Issues an additional 800 preferred shares to Natalie's brother for $4,000. Apr. 30 June 30 Oct. 31 31 31 Declares a semiannual dividend to the preferred stockholders of record on May 15, payable on June 1. Repurchases 750 shares of common stock issued to the lawyer, for $500. Recall that these were originally issued for $750. The lawyer had decided to retire and wanted to liquidate all of her assets. The company has had a very successful first year of operations. It earned revenues of $462,500 and incurred expenses of $364,050 (including $750 legal fee, but excluding income tax). Records income tax expense. (The company has a 20% income tax rate.) Declares a semiannual dividend to the preferred stockholders of record on November 15, payable on December 1. Prepare the stockholders' equity section of the balance sheet as of October 31. (Enter account name only and do not provide descriptive information.) COOKIE & COFFEE CREATIONS INC. Partial Balance Sheet October 31, 2021 Stockholders' Equity 6A $
Natalie and her friend Curtis Lesperance decide that they can benefit from joining Cookie Creations and Curtis's coffee shop. In this part of the problem, they want your help in preparing financial information following the first year of operations of their new business, Cookie & Coffee Creations. After establishing their company's fiscal year-end to be October 31, Natalie and Curtis begin operating Cookie & Coffee Creations Inc. on November 1, 2020. 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, 10,000 shares authorized, 2,000 shares issued $10,000 Common stock, no par value, 100,000 shares authorized, 25,930 shares issued 25,930 Cookie & Coffee Creations then has the following selected transactions during its first year of operations. Dec. 1 Issues an additional 800 preferred shares to Natalie's brother for $4,000. Apr. 30 June 30 Oct. 31 31 31 Declares a semiannual dividend to the preferred stockholders of record on May 15, payable on June 1. Repurchases 750 shares of common stock issued to the lawyer, for $500. Recall that these were originally issued for $750. The lawyer had decided to retire and wanted to liquidate all of her assets. The company has had a very successful first year of operations. It earned revenues of $462,500 and incurred expenses of $364,050 (including $750 legal fee, but excluding income tax). Records income tax expense. (The company has a 20% income tax rate.) Declares a semiannual dividend to the preferred stockholders of record on November 15, payable on December 1. Prepare the stockholders' equity section of the balance sheet as of October 31. (Enter account name only and do not provide descriptive information.) COOKIE & COFFEE CREATIONS INC. Partial Balance Sheet October 31, 2021 Stockholders' Equity 6A $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Natalie and her friend Curtis Lesperance decide that they can benefit from joining Cookie Creations and Curtis's coffee shop. In this
part of the problem, they want your help in preparing financial information following the first year of operations of their new business,
Cookie & Coffee Creations.
After establishing their company's fiscal year-end to be October 31, Natalie and Curtis begin operating Cookie & Coffee Creations Inc.
on November 1, 2020. 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,
10,000 shares authorized, 2,000 shares issued
$10,000
Common stock, no par value, 100,000 shares
authorized, 25,930 shares issued
25,930
Cookie & Coffee Creations then has the following selected transactions during its first year of operations.
Dec. 1
Issues an additional 800 preferred shares to Natalie's brother for $4,000.
Apr. 30
June 30
Oct. 31
31
31
Declares a semiannual dividend to the preferred stockholders of record on May 15, payable on June 1.
Repurchases 750 shares of common stock issued to the lawyer, for $500. Recall that these were originally issued for
$750. The lawyer had decided to retire and wanted to liquidate all of her assets.
The company has had a very successful first year of operations. It earned revenues of $462,500 and incurred expenses
of $364,050 (including $750 legal fee, but excluding income tax).
Records income tax expense. (The company has a 20% income tax rate.)
Declares a semiannual dividend to the preferred stockholders of record on November 15, payable on December 1.
Transcribed Image Text:Prepare the stockholders' equity section of the balance sheet as of October 31. (Enter account name only and do not provide
descriptive information.)
COOKIE & COFFEE CREATIONS INC.
Partial Balance Sheet
October 31, 2021
Stockholders' Equity
6A
$
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