CC14 COOKIE CREATIONS
GENERAL JOURNAL
J1
Date
Account Titles and Explanation
Debit
Credit
(a) Dec. 1 Cash ……………………………………………. 4,000
Preferred Stock ………………………… 4,000
Apr. 30 Cash Dividends
(2,800 X $0.50 X 1/2) …………………… 700
Dividends Payable ……………………. 700
Oct. 31 Income Tax Expense …………………….. 18,500
Income Taxes Payable
($462,500 – $370,000) X 20% …… 18,500
CC14 (Continued)
(b) COOKIE & COFFEE CREATIONS INC.
Statement of Retained Earnings
Year Ended October 31, 2018
Balance, November 1, 2017 ………………………………… $ 0
Add: Net income ……………………………………………… 74,000
74,000
(c) COOKIE & COFFEE CREATIONS INC.
Partial Balance Sheet
October 31, 2018
Stockholders’ equity
Paid-in capital
$0.50 noncumulative preferred stock,
no par value, 10,000 authorized,
2,800 stock issued ……………………………………….. $ 14,000
Common stock, no par value,
100,000 shares authorized, 25,930 issued
CC14 (Continued)
(d) Oct. 31 Revenues ……………………………………. 462,500
Income Summary …………………….. 462,500
31 Income Summary ………………………… 388,500