Question-based on, "correcting entries". I have tried it but do not understand it. Please be clear. Prepare the correcting entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)No. Date Account Titles and ExplanationDebitCreditDec.1.dividends31Interest ExpenseDec.2.31Common StoDec.3.31 Before preparing financial statements for the current year, the chief accountant for Blossom Company discovered the followingerrors 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 toCash $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 been2.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 valuecommon stock was recorded as a debit to Retained Earnings $1,860,000 and a credit to Common Stock $1,860,000.3.

Date Particulars Debit Credit Dec-31 Interest expense A/c (Dr) $ 56,000 To Cash…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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