On July 1, Year 1, Village Bookstore, Inc. appropriated retained earnings in the amount of $36,000 for a future remodeling project in the basement of the bookstore. On June 30, Year 1, the balance of Retained Earnings was $82,800 and the Cash balance was $43,200. Which of the following answers shows the effect of the July 1 event on the financial statements? Stockholders' Equity Assets=Liab.+C. Stk.+Ret. Earn.+App.R.ERev.-Exp.=Net Inc.CashA.NA=NA+NA+(36,000)+36,000NA-NA=NA(36,000) FAB.(36,000)=NA+NA+(36,000)+NANA-NA=NA(36,000) FAC.NA=NA+NA+NA+NANA-NA=NANAD.NA=NA+NA+(36,000)+36,000NA-NA=NANA
A. Choice A
B. Choice B
C. Choice C
D. Choice D
Answer: D
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Answer the following statement true (T) or false (F)