A Company Had Stockholders' Equity on January 1 as Follows

Essay

A company had stockholders' equity on January 1 as follows: Common Stock,$10 par value,1,000,000 shares authorized,250,000 shares issued; Contributed Capital in excess of Par Value,Common Stock,$750,000 and Retained Earnings of $2,700,000.On May 20,$1,500,000 worth of retained earnings was appropriated for a plant expansion to be constructed next year.Prepare the journal entry to record the appropriation.