Turquoise and Topaz Sisters had retained earnings of $15,000 on the balance sheet but disclosed in the

Question:

Turquoise and Topaz Sisters had retained earnings of $15,000 on the but disclosed in the footnotes that $2,000 of retained earnings was restricted for plant expansion and $1,000 was restricted for bond repayments. Cash of $2,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?
a. $12,000
b. $13,000
c. $15,000
d. $10,000

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...