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Journal entries for appropriate its inappropriate retained earnings for plant expansion.
1.(3/26/2009) Based on a recommendation of its Board of Directors, Goochland decides to appropriate (restrict) $200,000 of its inappropriated retained earnings for plant expansion at some time in the future.
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Debit
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2.(3/27/2009) Goochland sells the investment in Bullinger Company (from Transaction 1) for $48,400 cash.
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