On December 30, Billy’s Boat Yard (BBY) had $90,000 of cash,$20,000 of liabilities, $30,000 of common stock, and $40,000 ofunrestricted retained earnings. On December 31, BBY appropriatedretained earnings in the amount of $18,000 for a future remodelingproject.Page 624
Required
- Record the December 31 appropriation in the followingstatements model:
| | | | Stockholders’ Equity | Income Statement | |
Assets | = | Liab. | + | C. Stk | + | Ret. Earn. | + | App. Ret. Earn. | Rev. | – | Exp. | = | Net. Inc. | Cash Flow |
| | | | | | | | | | | | | | |
- Determine the amount of dividends that BBY can pay immediatelyafter the December 31 appropriation.
- Determine the total amount of retained earnings immediatelyafter the December 31 appropriation.
- Determine the total amount of cash immediately after theDecember 31 appropriation.
