Discuss the below:
Q: On January 1, 20--, Dover Company's retained earnings accounts had the following balances:
Appropriated for printing press....................$ 50,000
Unappropriated retained earnings..................800,000
.........................................................$850,000
During the year ended December 31, 20--, Dover completed the following selected transactions:
Mar. 15 Declared a semiannual dividend of $0.30 per share on preferred stock and $0.40 per share on common stock to shareholders of record on April 5, payable on April 10. Currently, 5,000 shares of $10 par preferred stock and 30,000 shares of $2 par common stock are outstanding.
Apr. 10 Paid the cash dividend.
July 2 Last year, Dover's board of directors appropriated $100,000 over a two-year period for a printing press. Made this year's appropriation for $50,000.
Sept. 15 Declared semiannual dividend of $0.30 per share on preferred stock and $0.40 per share on common stock to shareholders of record on October 5, payable on October 10.
Oct. 10 Paid the cash dividend.
Nov. 10 Board of directors declared a two-for-one common stock split.
Dec. 31 Net income for 20-- was $135,000. Closed the income summary account.
31 Closed the cash dividends account.
REQUIRED
1. Prepare journal entries for the transactions.
2. Post all entries affecting the appropriated and unappropriated retained earnings accounts to T accounts.
3. Prepare a retained earnings statement for the year ended December 31, 20--.