On July 1, Year 1, Village Bookstore, Incorporated appropria…
On July 1, Year 1, Village Bookstore, Incorporated 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? Balance Sheet Statement of Cash FlowsAssets=Liabilities+Stockholders’ EquityIncome StatementCash+Account Receivable=Account Payable+Retained Earnings−Appropriated Retained EarningsRevenue−Expense=Net IncomeA. + = +(36,000)−36,000 − = (36,000) FAB.(36,000)+ = +(36,000)− − = (36,000) FAC. + = + − − = D. + = +(36,000)−36,000 − =