The agreement under which Toshiba Printers issued its long-term debt requires the restriction of \(\$ 100,000\) of the company's retained earnings balance. Total retained earnings is \(\$ 250,000\), and common stock, no-par, has a balance of \(\$ 50,000\).

Requirements 

Report stockholders' equity on Toshiba's balance sheet, assuming the following:

a. Toshiba discloses the restriction in a note. Write the note.

b. Toshiba appropriates retained earnings in the amount of the restriction and includes no note in its statements. Follow the Teaching Format.