On December 15, 2013, the Bella Corporation established a retained earnings appropriation of $10,000 for future expansion. The balance of the retained earnings account prior to the transaction was $30,000. At December 31, 2013, the Corporation had 1,000 shares of $10 par common stock (issued at par) outstanding. The corporate charter indicates 10,000 of common stock are authorized and there is no treasury stock.
Required:
a) Indicate the effect of the appropriation on the financial statements. b) Record the appropriation in general journal form. c) Prepare the Stockholder's Equity section of the Bella Corporation's Balance sheet of 12/31/13.

Question

On December 15, 2013, the Bella Corporation established a retained earnings appropriation of $10,000 for future expansion. The balance of the retained earnings account prior to the transaction was $30,000. At December 31, 2013, the Corporation had 1,000 shares of $10 par common stock (issued at par) outstanding. The corporate charter indicates 10,000 of common stock are authorized and there is no treasury stock.
Required:
a) Indicate the effect of the appropriation on the financial statements.  b) Record the appropriation in general journal form.  c) Prepare the Stockholder's Equity section of the Bella Corporation's Balance sheet of 12/31/13.

Quizplus · Accepted Answer

The Answer of On December 15, 2013, the Bella Corporation established a retained earnings appropriation of $10,000 for future expansion. The balance of the retained earnings account prior to the transaction was $30,000. At December 31, 2013, the Corporation had 1,000 shares of $10 par common stock (issued at par) outstanding. The corporate charter indicates 10,000 of common stock are authorized and there is no treasury stock.
Required:
a) Indicate the effect of the appropriation on the financial statements.  b) Record the appropriation in general journal form.  c) Prepare the Stockholder's Equity section of the Bella Corporation's Balance sheet of 12/31/13.

On December 15, 2013, the Bella Corporation Established a Retained