RETAINED EARNINGS APPROPRIATION On October 2, 20-1, the board of directors of Foxworth Company appropriated $80,000 of retained earnings for the purpose of buying a new sailboat (used for entertaining clients). On July 15, 20-2, the sailboat was purchased and the board of directors decided that the appropriation was no longer needed.

Prepare journal entries for the appropriation on October 2, 20-1, and the subsequent return on July 15, 20-2.