Acme Corporation has $100,000 of common shares outstanding and $200,000 of retained earnings at December 31, 2016.

Question:

Acme has $100,000 of common shares outstanding and $200,000 of retained earnings at December 31, 2016. The board of directors passes a resolution at that date to restrict $80,000 of retained earnings for a plant expansion.
Required:
1. Record the restriction in journal entry form.
2. Show the shareholders' equity section of the and appropriate note disclosure at December 31, 2016.
3. Record the construction of the building when completed on June 30, 2017 for a cost of $90,000, paid in cash.
4. Record the journal entry to record the lifting of the restriction on July 31, 2017. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...