On December 30, Billy's Boat Yard (BBY) had $90,000 of cash, $20,000 of liabilities, $30,000 of common
Question:
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 of unrestricted retained earnings. On December 31, BBY appropriated retained earnings in the amount of $18,000 for a future remodeling project.
Required
a. Record the December 31 appropriation in the following statements model:
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b. Determine the amount of dividends that BBY can pay immediately after the December 31 appropriation.
c. Determine the total amount of retained earnings immediately after the December 31 appropriation.
d. Determine the total amount of cash immediately after the December 31 appropriation.
Step by Step Answer:
a Balance Sheet Income Statement Stmt of Assets Liab Stockholders Equity Rev E...View the full answer
Survey of Accounting
ISBN: 978-1259631122
5th edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay
