I can not figure out how to find the Common Stock and Retained Earnings for the

Question

I can not figure out how to find the Common Stock and Retained Earnings for the Balance Sheet

IED WileyPLUS CC13 Natalie's Friend, Curtis How To Install Hair Extensions YouTube Natural Hair Extensions: Human Hair Wigs Weygandt, Financial & Managerial Accounting, 2e PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Ch 11 SLO Part I C Creations Continuing Problem Continuing Cookie Chronicle 11 (Part 1) 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 come to you with questions about setting up a corporation for their new business. ontinuing Cooki Part Curtis has operated his coffee shop for 2 years. He buys coffee, muffins, and cookies from a local supplier. Natalie's business consists of giving cookie-making classes and selling fine European mixers. The plan is for Natalie to use the premises Curtis currently rents to give her cookie-making classes and demonstrations of the mixers that she sells. Natalie will also hire, train, and supervise staff to bake the cookies and muffins sold in the coffee shop. By offering her classes on the premises, Natalie will save on travel time going from one place to another. Another advantage is that the coffee shop will have one central location for selling the mixers. Review Results by Study Objective The current market values of the assets of both businesses are as follows Curtis's Coffee Cookie Creations Cash Accounts receivable Inventory Equipment $7,500 100 450 2,500 $11,630 800 1,200 Cookie Creations decided not to buy the delivery van considered in Chapter 9 Combining forces will also allow Natalie and Curtis to pool their resources and buy a few more assets to run their new business venture Curtis and Natalie then meet with a lawyer and form a corporation on November 1, 2016, called Cookie & Coffee Creations Inc. The articles of incorporation state that there will be two classes of shares that the corporation is authorized to issue: common shares and preferred shares. They authorize 100,000 no-par shares of common stock, and 10,000 no-par shares of preferred stock with a s0.50 noncumulative dividend. The assets held by each of their businesses will be transferred into the corporation at current market value. Curtis will receive 10,550 common shares, and Natalie will receive 14,630 common shares in the corporation. Therefore, the shares have a fair value of $1 per share. Natalie and Curtis are very excited about this new business venture Your answer is correct Prepare the journal entries required on November 1, 2016, the date when Natalie and Curtis transfer the assets of their respective businesses into Cookie & Coffee Creations Inc. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Explanation / Answer

From journal entries passes in this question , we can find the common stock , total paid in capital , retained earnings.

Common stock here is:

=$25,180+$750

=$25,930

Total paid in capital=$25,930+$10,000

=35,930

Retained earnings=(750) (organizational expense)

Total stock holders equity=$35,180

Shown as:

Paid in capital: Preferred stock $10,000 Common stock $25,930 Total paid in capital $35,930 Retained earnings (750) Total Stockholders Equity $35,180

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