The stockholders’ equity accounts of Genisus Corporation on January 1, 20X1, contained the following balances:

Transactions affecting stockholders’ equity during 20X1 follow.

INSTRUCTIONS
1. Set up a ledger account (381) for Retained Earnings and record the January 1, 20X1, balance.
2. Record the transactions in general journal form and post them to the Retained Earnings account only. Use the account titles in the chapter.
3. Prepare a statement of retained earnings for the year 20X1.

Analyze: If Genisus Corporation had not declared cash or stock dividends for common stockholders, what balance would be found in the unappropriated Retained Earnings account at December 31, 20X1?

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Preferred Stock (10%, $100 par value, 10,000 shares authorized) Issued and Outstanding, 2,000 Shares Paid-in Capital in Excess of Par Value-Preferred Common Stock ($20 par value, 100,000 shares authorized) Issued and Outstanding, 20,000 Shares Retained Earnings Total Stockholders' Equity $200,000 2,000 $202,000 400,000 325,000 $927,000