Detained earrings represents past incomes less past dividends, therefore any balance in his account would be listed on the income statement. a. True b. False The amount of capital paid in by the stockholders of corporation is called legal capital. a. True b. False If sinking fund cash is used to purchase investments, those investments are reported on the balance sheet as marketable securities. a. True b. False When a corporation issues stock at a premium, it reports the premium as an other income item on the income statement. a. True b. False The stock dividends distributable account is listed in the current liability section of the balance sheet. a. True b. False Premium on bonds payable may be amortized by the straight line method if obtained by its use do NOT materially differ from the results obtained by use of method. a. True b. False At 12/31/2016, the cash and securities held in a sinking fund to redeem bonds in 2022 are classified on the balance sheet as current assets a. True b. False