4-10 On December 15, 2002, the directors of Baraka Chai voted to appropriate Sh90,000 of retained earnings in the business assets equal to appropriation for use in expanding the corporations factory building. This was the fourth of such appropriations; after it was recorded, the stockholders' equity section of Baraka balance sheet appeared as follows:

Paid-in capita

Common stock, par Sh20 150,000 shares author

Sh

100,000 iss

2,000,00

Paid-in capital in excess of par value, comm

3,600,00

Total paid-in capit

5,600,00

Retained earning

Unapprop

1,800,00

Appropriated for plant expan

360,00

Total Retained ear

2,160,0

Total stockholders' equ

7,760,00

On January 9, 2003,the corporation entered into a contract for the construction of the factory addition for which retained earnings were appropriated. On November 1, 2003, the addition was completed and the contractor was paid Sh330.000. On December 14, 2003, the board of directors voted to return the balance of Retained earnings appropriated for plant expansion account to unappropriated Retained earnings. The corporation's stock was selling as Sh47 in the market on December 14, 2003. Baraka Chai reported net income for 2002 of Sh530,000 and for 2003 of Sh600,000.

Prepare the appropriate entries for Baraka Chai for the information above (December 15, 2002 to January 23, 2004

Prepare stockholders' equity section of the balance sheet for Baraka Chai

December 31, 2003, in proper accounting form

.as).Required:0ity00nings0sion.0riateds:0al0on0ueds.ized,l:ka Chai as

December 31, 2003, in proper accounting form.