On January 3, the board of directors of Virgil Company, Inc., votes to appropriate $90,000 of the corporation’s unappropriated retained earn¬

ings to Retained Earnings Appropriated for Plant Expansion. This is the fourth such appropriation; it gives a balance of $298,000 in Retained Earnings Appro¬

priated for Plant Expansion. On September 1, the corporation buys a warehouse for $320,000 (building, $190,000; land, $130,000), paying $135,000 down and financing the remainder on a mortgage note. Write the entries to record the following:

a. The appropriation of retained earnings on January 3.

b. The purchase of the building and land on September 1.

c. The release of $298,000 of the Retained Earnings Appropriated for Plant Expansion on September 2.