Question

Here is the problem:

Following are selected transactions of Black Corporation:

12-31-2018	The board of directors authorized the appropriation of $200,000 of retained earnings to provide for the future acquisition of a new plant site and the construction of a new building.
01-02-2019	Purchased a plot of land for the new plant site for cash, $400,000.
4-27-2019	Entered into a contract with Fryer Construction Company for construction of a new building, payment to be made when the building is completed in 2021.
12-31-2019	The board of directors authorized the appropriation of another $200,000 of retained earnings to provide for the future acquisition of a new plant site and the construction of a new building.
12-31-2020	The board of directors authorized the appropriation of another $200,000 of retained earnings to provide for the future acquisition of a new plant site and the construction of a new building.
02-10-2021	Following the final inspection and approval of the new building, Fryer Construction Company was paid in full, $900,000.
03-10-2021	The board of directors authorized release of the retained earnings appropriated for the plant site and building.
04-02-2021	A 10% stock dividend on the 90,000 shares of $100 par value common stock outstanding was declared. The market price of the stock on this date was $106 per share.

Required: Prepare the journal entries to record the above transactions. 

Answer 1

Black Corporation - Journal eutrice Dare bauticulare Debit Credit 31112118 Retained Cearings $200,000 Appropriate retained cerswings $200,000 (Being retained eaninge apropiated) 02/04/19 land $400,000 - cath $ 400,000 (Being Land Purchared) chased 27/04/19 No Entry 31/12/16 Retained Earnings $200,000 Appropriate retoued earnings $200,000 (Bing retained earings appropriated)

31/12/2020 Retained earnings $200,000 Appropriate retained earnings $200,000 (Being semained earnings appropriated) 10/02/204 Building $900,000 foyee conltucion $900.000 (Bring Building coultructed]

10102/21 Fryce Construction $900,000 Calh $ 900,000 | (Bung anont faid) 10/03/21 Appropriate retained earnings $600,000 Retained calwings $600,000 (Being ancour released) 102/04/21 dividend & 900,000 Dividend Payable & 900.000 Being divid end declared)