A Company Had Stockholders' Equity on January 1 as Follows

question 31

Essay

A company had stockholders' equity on January 1 as follows: Common Stock,$10 par value,1,000,000 shares authorized,250,000 shares issued; Contributed Capital in Excess of Par Value,Common Stock,$750,000 and Retained Earnings of $2,700,000.On May 20,$1,500,000 worth of retained earnings was appropriated for a plant expansion to be constructed next year.Prepare the journal entry to record the appropriation.

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Definitions:

External Iliac Vein

A large vein in the pelvis that carries deoxygenated blood from the lower limbs back to the heart.

Superior Vena Cava

A large vein that carries deoxygenated blood from the upper half of the body to the heart's right atrium.

Mesenteric Vein

A vein in the mesentery that drains blood from the small intestine and parts of the large intestine into the portal vein.

Ductus Venosus

A fetal blood vessel that diverts some blood flow away from the liver and directly into the inferior vena cava.