home / study / business / accounting / accounting questions and answers / accounting principles: a business perspective, 10th edition problem 13-3 Question: Accounting Principles: A Business Perspective, 10th edition problem 13-3 Accounting Principles: A Business Perspective, 10th edition problem 13-3 Problem 13-3 Prepare journal entries for retained earnings appropriation, asset acquisition, and stock dividend (L.O. 2) Following are selected transactions of White Corporation:

2011 Dec. 31 The board of directors authorized the appropriation of $100,000 of retained earnings to provide for the future acquisition of a new plant site and the construction of a new building. (On the last day of each of the next six years, the same action was taken. You need not make entries for these six years.)

2016 Jan. 2 Purchased a new plant site for cash, $200,000.

Mar. 29 Entered into a contract for construction of a new building, payment to be made within 30 days following completion. 2018

Feb. 10 Following final inspection and approval of the new building, Dyer Construction Company was paid in full, $1,000,000.

Mar. 10 The board of directors authorized release of the retained earnings appropriated for the plant site and building.

Apr. 2 A 5% stock dividend on the 100,000 shares of $100 par value common stock outstanding was declared. The market price on this date was $110 per share.