51. Prior-period adjustments are common in current accounting because of the complexity of the financial reporting process.
52. The amount of a corporation's retained earnings that has been restricted/appropriated should be reported in the notes to the financial statements.
53. A restriction/appropriation of retained earnings establishes cash assets that are set aside for a specific purpose.
54. A 10% stock dividend will increase the number of shares outstanding but the book value per share will decrease.
55. The cost method of accounting for the purchase and sale of treasury stock is a commonly used method.
56. Under the cost method, when treasury stock is purchased by the corporation, the par value and the price at which the stock was originally issued are important.
57. If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share, $1,000 of income is reported in the income statement.
58. The paid-in capital from sale of treasury stock account is debited if the sales price of the treasury stock sold is greater than its cost.
59. A sale of treasury stock may result in a decrease in paid-in-capital. All decreases should be charged to the Paid-In-Capital from Sale of Treasury account.
60. Treasury Stock is listed in the stockholders' equity section on the balance sheet.