Initial Retained Earnings at $12/31/$x$0$:

Appropriated for Plant Expansion: $$1,000,000$

Appropriated for Bond Covenant: $$1,100,000$

Unappropriated: $$3,050,000$

Total Retained Earnings at $12/31/$x$0$:

$1$

$,$

$000$

$,$

$000$

$+$

$1$

$,$

$100$

$,$

$000$

$+$

$3$

$,$

$050$

$,$

$000$

$=$

$5$

$,$

$150$

$,$

$000$

$1,000,000+1,100,000+3,050,000=5,150,000$

Transactions and Events during $20$x$1$:

Declared a Dividend $($$$1\mathrm{.}50$ per share$)$:

Retained Earnings:

$285$

$,$

$000$

$($debit$)$

$285,000($debit$)$

Dividends Payable:

$285$

$,$

$000$

$($credit$)$

$285,000($credit$)$

Paid the Dividend:

Dividends Payable:

$285$

$,$

$000$

$($debit$)$

$285,000($debit$)$

Cash:

$285$

$,$

$000$

$($credit$)$

$285,000($credit$)$

Declared a Property Dividend:

Investment in QBM Stock:

$160$

$,$

$000$

$($debit$)$

$160,000($debit$)$

Gain on QBM Stock:

$160$

$,$

$000$

$($credit$)$

$160,000($credit$)$

Retained Earnings:

$780$

$,$

$000$

$($debit$)$

$780,000($debit$)$

Property Dividend Distributed:

$780$

$,$

$000$

$($credit$)$

$780,000($credit$)$

Declared a $10\%$ Stock Dividend:

Retained Earnings:

$893$

$,$

$000$

$($debit$)$

$893,000($debit$)$

CS Dividend Distributable:

$190$

$,$

$000$

$($credit$)$

$190,000($credit$)$

Paid$-$in Capital in Excess of Par$-$CS:

$703$

$,$

$000$

$($credit$)$

$703,000($credit$)$

Appropriated $$30,000$ for Plant Expansion:

Retained Earnings:

$30$

$,$

$000$

$($debit$)$

$30,000($debit$)$

RE $-$ Appropriated for Plant Expansion:

$30$

$,$

$000$

$($credit$)$

$30,000($credit$)$

Eliminated the Appropriation for Bond:

RE $-$ Appropriated for Bonds:

$1$

$,$

$100$

$,$

$000$

$($debit$)$

$1,100,000($debit$)$

Retained Earnings:

$1$

$,$

$100$

$,$

$000$

$($credit$)$

$1,100,000($credit$)$

Declared a $30\%$ Stock Dividend:

Retained Earnings:

$570$

$,$

$000$

$($debit$)$

$570,000($debit$)$

CS Dividend Distributable:

$570$

$,$

$000$

$($credit$)$

$570,000($credit$)$

Declared a $2$ for $1$ Stock Split:

No Entry

Prior Period Adjustment:

Retained Earnings:

$22$

$,$

$000$

$($debit$)$

$22,000($debit$)$

Accumulated Depreciation:

$22$

$,$

$000$

$($credit$)$

$22,000($credit$)$

Net Income for $20$x$1$:

Retained Earnings:

$560$

$,$

$000$

$($credit$)$

$560,000($credit$).$

Prepare a Statement of Retained Earnings at $12/31/$x$1.$ Net income was $$560,000.$

then make journal entries to it