Discuss teh below:
CASH DIVIDEND AND APPROPRIATION OF RETAINED EARNINGS On January 1, 20--, MacMillan Company's retained earnings accounts had the following balances:
Appropriated for computer....................$ 25,000
Appropriated for warehouse.....................80,000
Unappropriated retained earnings.............600,000
...................................................$705,000
During the year ended December 31, 20--, MacMillan completed the following selected transactions:
Mar. 16 Last year, MacMillan's board of directors appropriated $75,000 over a three-year period for a mainframe computer. Made this year's appropriation for $25,000.
Nov. 5 Purchased a new warehouse for $80,000, paying cash for the total amount.
5 The board of directors returned the amount of retained earnings set aside for the warehouse to unappropriated retained earnings.
12 Declared a cash dividend of $0.65 per share on common stock to shareholders of record on December 8, payable on December 19.
Currently, 30,000 shares of common stock are outstanding.
Dec. 19 Paid the cash dividends.
REQUIRED
Prepare journal entries for the transactions.