Response to the following questions:
1. Explain the relationship between the income statement and the reconciliation of retained earnings.
2. List the three types of appropriated retained earnings accounts. Which of these types is most likely not a detriment to the payment of a dividend? Explain.
3. A balance sheet represents a specific date, such as "December 31," while an income statement covers a period of time, such as "For the Year Ended December 31, 2011." Why does this difference exist?