brporations g are selected transactions of White Co llowin Pre Prepare ja for re
ID: 2578371 • Letter: B
Question
brporations g are selected transactions of White Co llowin Pre Prepare ja for retai approp acquisiti divi board of directors authorized the appropriation of $50,000 of retained rovide for the future acquisition of a new plant site and the n of a new building. (On the last day of each of the next six years, tion was taken. You need not make entries for these six years.) L2 Purchased a new plant site for cash, $100,000. a Entered into a contract for construction of a new building, payment to be made Mat. within 30 days following completion. 2011 Feb. 10 Following final inspection and approval of the new building, Dyer Construction Mar. 10 The board of directors authorized release of the retained earnings appropriated Apr Company was paid in full, $500,000 for the plant site and building. A 5% stock dividend on the 100,000 shares of $50 par value common stock outstanding was declared. The market price on this date was $55 per share. 2 Requ Prepare journal entries for all of these transactions.Explanation / Answer
Please note entries from 2004 for six years for appropriation not made as mentioned in the question.
Date Account Titles and Explanations Debit Credit 2009 Jan. 2 Land 100000 Cash 100000 (To record purchase of new plant site for cash) Mar. 29 No entry required 2011 Feb. 10 Building 500000 Cash 500000 (To record new building acquired for cash) Mar. 10 Appropriated retained earnings 300000 Retained earnings ($50000 x 6) 300000 (To record release of appropriated retained earnings) Apr. 2 Retained earnings (5000 x $55) 275000 Common Stock dividends distributable (5000 x $50) 250000 Additional paid-in capital (5000 x $5) 25000 (To record stock dividend declared)Related Questions
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