CASH DI VIDEND AND APPROPRI ATION OF RET AINED EARNING S On January 1, 20--, Krausert Company’s retained earnings accounts had the following balances: During the year ended December 31, 20--, Krausert completed the following selected transactions: Mar. 16 Krausert’s board of directors appropriated $50,000 for acquisition of new factory equipment. Nov. 5 Purchased a warehouse for $70,000, paying cash for the total amount. 5 The board of directors returned the amount of retained earnings set aside for the warehouse to unappropriated retained earnings. 12 Declared a cash dividend of $0.90 per share on common stock to shareholders of record on December 8, payable on December 19. Currently, 40,000 shares of common stock are outstanding. Dec. 19 Paid the cash dividends. REQUIRED Prepare journal entries for the transactions.

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College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160
BuyFind

College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160

Solutions

Chapter
Section
Chapter 21, Problem 10SPB
Textbook Problem

CASH DI VIDEND AND APPROPRI ATION OF RET AINED EARNING S On January 1, 20--, Krausert Company’s retained earnings accounts had the following balances:

Chapter 21, Problem 10SPB, CASH DI VIDEND AND APPROPRI ATION OF RET AINED EARNING S On January 1, 20--, Krausert Companys

During the year ended December 31, 20--, Krausert completed the following selected transactions:

Mar. 16 Krausert’s board of directors appropriated $50,000 for acquisition of new factory equipment.

Nov. 5 Purchased a warehouse for $70,000, paying cash for the total amount.

5 The board of directors returned the amount of retained earnings set aside for the warehouse to unappropriated retained earnings.

12 Declared a cash dividend of $0.90 per share on common stock to shareholders of record on December 8, payable on December 19. Currently, 40,000 shares of common stock are outstanding.

Dec. 19 Paid the cash dividends.

REQUIRED

Prepare journal entries for the transactions.

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Chapter 21 Solutions

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
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