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Dweeb Industries Decided to Appropriate $40,000 of Retained Earnings During

question 25

Essay

Dweeb Industries decided to appropriate $40,000 of retained earnings during each of the last five years its $200,000 bonds are outstanding.Prepare the journal entry to record the initial appropriation and at retirement of the bonds on October 1,2015.


Definitions:

Offer

A proposal presented by one party to another as the basis for a contract, requiring acceptance to become legally binding.

Mirror Image Rule

A principle in contract law stating that an offer must be accepted exactly with no modifications for a valid contract to be formed.

Offeror

The party making the offer.

Accepted

Acknowledged or agreed upon; typically refers to an agreement or proposal that has been agreed to by all parties involved.

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