An appropriation of retained earnings by the board of directors of a corporation for bonded indebtedness will result in The establishment of a sinking fluid to retire bonds when they mature. A decrease in cash on the balance sheet with an equal increase in the investment and funds section of the balance sheet. A decrease in the total retained earnings presented on the balance sheet. The disclosure that management does not intend to distribute assets, in the form of dividends, equal to the amount of the appropriation. An appropriation of retained earnings by the board of directors of a corporation for future plant expansion will result in The establishment of a fund to help finance future plant expansion. A decrease in cash on the balance sheet with an equal increase in the investments and funds section of the balance sheet. The disclosure that management does not intend to distribute, in the form of dividends, assets equal to the amount of the appropriation. A decrease in the total retained earnings presented on the balance sheet. On February 1, Hyde Corp, a newly formed company, had the following stock issued and outstanding: Common stock, no par, $1 stated value. 10,000 shares originally issued for $15 per share Preferred stock $10 par value, 3,000 shares originally issued for $25 per share. Hyde's February 1 statement of equity should report East Co. issued 1,000 shares of its $5 par-value common stock to Howe as compensation for 1,000 hours of legal services performed. Howe usually bills $ 160 per hour for legal services. On the date of Issuance, the stock was trading on a public exchange at $ 140 per share. By what amount should the additional paid-in capital account increase as a result of this transaction? $135,000 $140,000 $155,000 $160,000 Earl was engaged by Farm Corp. to perform consulting services, Earl's compensation for these services consisted of 1,000 shares of Farm's $10 par value common stock, to be issued to Earl on completion of Earl's services. On the execution date of Earl's employment contract. Farm's stock had a market value of $40 per share. Six months later, when Earl's services were completed and the stock issued, the stock's market value was $50 per share. Farm's management estimated that Earl's services were worth $ 100,000 in cost savings to the company. As a result of this transaction, additional paid-in capital should increase by A. $100,000 B. $90,000 C. $40,000 D. $30,000 Ashe Corp. was organized on January 1, with authorized capital of 100,000 shares of $20 par value common stock. During the year, Ashe had the following transactions affecting equity: January 10 - issued 25,000 shares at $22 a share March 25 - issued 1,000 shares for legal services when the fair value was $24 a share September 30 - issued 5,000 shares for a tract of land when the fair value was $26 a share What amount should Ashe report for additional paid-in capital at December 31? A. $84,000 B. $80,000 C. $54,000 D. $50,000 On July 1, Rya Corporation issued 1,000 shares of its $20 par common and 2,000 shares of its $20 par convertible preferred stock for a lump sum of $80,000. At this date, Rya's common stock was selling for $36 per share and the convertible preferred stock for $27 per share. The amount of proceeds allocated to Rya's preferred stock should be A. $60,000 B. $54,000 C. $48,000 D. $44,000 Beck Corp. issued 200,000 shares of common stock when it began operations in Year 1 and issued an additional 100,000 shares in Year 2. Beck also issued preferred stock convertible to 100,000 shares of common stock. In Year 3, Beck purchased 75,000 shares of its common stock and held it in treasury. At the end of Year 3, how many shares of Beck's common stock were outstanding? 400,000 325,000 300,000 225,000