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c. contributions by stockholders.
d. both income retained by the corporation and contributions by
stockholders.
28. Stockholders' equity is generally classified into two major
categories:
a. contributed capital and appropriated capital.
b. appropriated capital and retained earnings.
c. retained earnings and unappropriated capital.
d. earned capital and contributed capital.
29. The accounting problem in a lump sum issuance is the
allocation of proceeds between the classes of securities. An
acceptable method of allocation is the
a. pro forma method.
b. proportional method.
c. incremental method.
d. either the proportional method or the incremental method.
30. When a corporation issues its capital stock in payment for
services, the least appropriate basis for recording the transaction is
the
a. market value of the services received.
b. par value of the shares issued.