Following are selected transactions of Taylor Corporation:
2004
Dec. 31 By action of the board of directors, USD 450,000 of retained earnings was appropriated to provide for future expansion of the company”s main building. (On the last day of each of the next four years, the same action was taken. You need not make entries for these years.)
2009
Jan. 3 Obtained, at a cost of USD 4,500, a building permit to construct a new wing on the main plant building.
July 30 Paid USD 1,800,000 to Starke Construction Company for completion of the new wing.
Aug. 4 The board of directors authorized the release of the sum appropriated for expansion of the plant building. 4 The board of directors declared a 10 percent common stock dividend on the 25,000 shares of USD 500 par value common stock outstanding. The market price on this date was USD 660 per share. Prepare journal entries to record all of these transactions.