Question-based on, "prepare I have tried it but got it wrong. Please be clear and missing the red outline boxes. 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 O for the amounts.)No. Date Account Titles and ExplanationDebitCreditDec.1.Interest Expense56,00031Cash56,000Dec.2.Cash Dividends56,00031Cash56,000Dec.Cash Dividends56,00031Interest Expense56,0003. 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.

Answered: Before preparing financial statements…

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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Question-based on, "prepare

I have tried it but got it wrong.

Please be clear and missing the red outline boxes.

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 O for the amounts.)
No. Date Account Titles and Explanation
Debit
Credit
Dec.
1.
Interest Expense
56,000
31
Cash
56,000
Dec.
2.
Cash Dividends
56,000
31
Cash
56,000
Dec.
Cash Dividends
56,000
31
Interest Expense
56,000
3.

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.

Expert Solution

Step 1 General Introduction

Correcting entry are those journal entries that are made to correct erroneous transaction that have been earlier recorded in general ledger. Errors can be corrected by reversing entry and making second journal entry or by passing single journal entry and by considering the effect of the new entry to be made.

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