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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 o for the amounts.)

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.)

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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Current Attempt in Progress Before preparing financial statements for the current year, the chief accountant for Sunland Company discovered the following errors in the accounts. 1. 2. 3. 1. 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.) Account Titles and Explanation N The declaration and payment of $48,500 cash dividend was recorded as a debit to Interest Expense $48,500 and a credit to Cash $48,500. No. Date Dec. 31 2. A 10% stock dividend (1,400 shares) was declared on the $12 par value stock when the market price per share was $18. The only entry made was Stock Dividends (Dr.) $16,800 and Dividend Payable (Cr.) $16,800. The shares have not been issued. 3. A 4-for-1 stock split involving the issue of 357,000 shares of $5 par value common stock for 89,250 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,785,000 and a credit to Common Stock $1,785,000. Dec. 31 Dec. 31 Cash Dividends Interest Expense Debit Credit LII
Transcribed Image Text:Current Attempt in Progress Before preparing financial statements for the current year, the chief accountant for Sunland Company discovered the following errors in the accounts. 1. 2. 3. 1. 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.) Account Titles and Explanation N The declaration and payment of $48,500 cash dividend was recorded as a debit to Interest Expense $48,500 and a credit to Cash $48,500. No. Date Dec. 31 2. A 10% stock dividend (1,400 shares) was declared on the $12 par value stock when the market price per share was $18. The only entry made was Stock Dividends (Dr.) $16,800 and Dividend Payable (Cr.) $16,800. The shares have not been issued. 3. A 4-for-1 stock split involving the issue of 357,000 shares of $5 par value common stock for 89,250 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,785,000 and a credit to Common Stock $1,785,000. Dec. 31 Dec. 31 Cash Dividends Interest Expense Debit Credit LII
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