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1. The declaration and payment of $56,000 cash dividend was recorded as a debit to Interest Expense $56,000 and a credit to Cash $56,000. A 10% stock dividend (1,200 shares) was declared on the $13 par value stock when the market price per share was $18. The only entry made was Stock Dividends (Dr.) $15,600 and Dividend Payable (Cr.) $15,600. The shares have not been 2. issued. A 4-for-1 stock split involving the issue of 372,000 shares of $5 par value common stock for 93,000 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,860,000 and a credit to Common Stock $1,860,000. 3.

1. The declaration and payment of $56,000 cash dividend was recorded as a debit to Interest Expense $56,000 and a credit to Cash $56,000. A 10% stock dividend (1,200 shares) was declared on the $13 par value stock when the market price per share was $18. The only entry made was Stock Dividends (Dr.) $15,600 and Dividend Payable (Cr.) $15,600. The shares have not been 2. issued. A 4-for-1 stock split involving the issue of 372,000 shares of $5 par value common stock for 93,000 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,860,000 and a credit to Common Stock $1,860,000. 3.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare the correcting entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit Dec. 1. dividends 31 Interest Expense Dec. 2. 31 Common Sto Dec. 3. 31
Transcribed Image Text:Prepare the correcting entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit Dec. 1. dividends 31 Interest Expense Dec. 2. 31 Common Sto Dec. 3. 31
Before preparing financial statements for the current year, the chief accountant for Blossom Company discovered the following errors in the accounts. The declaration and payment of $56,000 cash dividend was recorded as a debit to Interest Expense $56,000 and a credit to Cash $56,000. 1. A 10% stock dividend (1,200 shares) was declared on the $13 par value stock when the market price per share was $18. The only entry made was Stock Dividends (Dr.) $15,600 and Dividend Payable (Cr.) $15,600. The shares have not been 2. issued. A 4-for-1 stock split involving the issue of 372,000 shares of $5 par value common stock for 93,000 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,860,000 and a credit to Common Stock $1,860,000. 3.
Transcribed Image Text:Before preparing financial statements for the current year, the chief accountant for Blossom Company discovered the following errors in the accounts. The declaration and payment of $56,000 cash dividend was recorded as a debit to Interest Expense $56,000 and a credit to Cash $56,000. 1. A 10% stock dividend (1,200 shares) was declared on the $13 par value stock when the market price per share was $18. The only entry made was Stock Dividends (Dr.) $15,600 and Dividend Payable (Cr.) $15,600. The shares have not been 2. issued. A 4-for-1 stock split involving the issue of 372,000 shares of $5 par value common stock for 93,000 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,860,000 and a credit to Common Stock $1,860,000. 3.
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