1. Assume the following for ShopMart during the current year: Beginning retained earnings =

$20,000;

Ending retained earnings =

$10,000;

and the net loss for the year was

$6,000.

2. What was the cash dividends paid to stockholders for the year?

Assume the following information for ShopMart during the year: Sales Revenue =

$400,000;

Cost of Goods Sold =

$200,000;

Beginning Accounts Receivable =

$75,000;

Ending Accounts Receivable =

$85,000;

Beginning Merchandise Inventory =

$125,000;

Ending Merchandise Inventory =

$123,000;

Beginning Accounts Payable =

$44,000;

Ending Accounts Payable =

$60,000.

Calculate cash receipts from customers during the year.

3. Assume the following information for ShopMart during the year: Sales Revenue =

$525,000;

Cost of Goods Sold =

$325,000;

Beginning Accounts Receivable =

$65,000;

Ending Accounts Receivable =

$73,000;

Beginning Merchandise Inventory =

$120,000;

Ending Merchandise Inventory =

$118,000;

Beginning Accounts Payable =

$56,000;

Ending Accounts Payable =

$66,000.

Calculate cash paid for merchandise inventory during the year.

4. A preferred stock dividend that has not been paid for the year and the preferred stock is cumulative is called a

A.

Noncumulative Dividend

B.

Dividend Payable

C.

Deferred Dividend

D.

Dividend in Arrears

5. Which of the following statements are true regarding the issuance of a small stock dividend to common stockholders? (check all that apply)

A.

The Stock Dividends account is debited on the distribution date based on the market value of the stock

B.

The Paid-In Capital in Excess of Par account is credited for the issuance amount above the par value of the stock

C.

The Stock Dividends account is debited on the distribution date based on the par value of the stock

D.

The Common Stock Dividend Distributable account is credited for the par value of the stock

6. When a prior period adjustment is made by a company

A.

The beginning Retained Earnings balance is corrected due to additional dividends being declared by the company's board of directors

B.

The beginning Retained Earnings balance is corrected due to an error discovered in the current accounting period