On January 3, the board of directors of Torres Company, Inc., voted to appropriate $ 90,000 of the corporation’s unappropriated Retained Earnings to Retained Earnings Appropriated for Property Expansion. This is the fourth such appropriation; it gives a balance of $ 298,000 in Retained Earnings Appropriated for Property Expansion. On September 1, the corporation buys a warehouse for $ 320,000 (building, $ 190,000; land, $ 130,000), paying $ 135,000 down and financing the remainder on a mortgage note. At the September 1 meeting, the board of directors orders the corporation to release on September 2 the $ 298,000 of the Retained Earnings Appropriated for Property Expansion.
Write the entries to record the following:
a. The appropriation of Retained Earnings on January 3.
b. The purchase of the building and land on September 1.
c. The release of $ 298,000 of the Retained Earnings Appropriated for Property Expansion on September 2.