Record the appropriation of $77000 of retained earnings on December 31, 2022, by Jack Inc. to establish an appropriation for bond retirement. Record the entry to establish appropriation.
Record the appropriation of $77000 of
Appropriation of retained earnings is a common practice used by companies to set aside a portion of their earnings for a specific purpose. This helps companies to allocate funds for a specific use and prevents the funds from being used for other purposes. One common use of appropriation of retained earnings is to establish a fund for bond retirement, which involves paying off the outstanding debt owed to bondholders. In this case, we will record the appropriation of $77,000 of retained earnings by Jack Inc. on December 31, 2022, to establish an appropriation for bond retirement.
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