1.SheridanCompany declared dividends of $20300in fiscal 2021 and paid the $42600dividends that were declared in fiscal 2020.Sheridanpaid the 2021 dividends in early fiscal 2022. Which of the following journal entries would NOT be recorded in fiscal 2021?

debit to Retained Earnings and credit to Cash Dividends for $20300

debit to Dividends Payable and credit to Cash for $20300

debit to Dividends Payable and credit to Cash for $42600

debit to Cash Dividends and credit to Dividends Payable for $20300

2.Which one of the following is NOT necessary in order for a corporation to pay a cash dividend?

declaration of dividends by the board of directors

adequate cash

approval of shareholders

retained earnings

3.The entry to record the reacquisition of common shares at a cost higher than the average issue cost requires a

credit to Retained Earnings.

debit to Loss on Repurchase of Common Shares.

credit to Common Shares.

debit to Common Shares.

4.Which of the following transactions would NOT be included in the Statement of Changes in Shareholders' Equity?

declaration of a stock dividend

gain on discontinued operations

reacquisition of shares at a loss

shares issued for cash