Before preparing financial statements for the current year, the chief accountant for Blossom Company discovered the following errors in the?

Before preparing financial statements for the current year, the chief accountant for Blossom Company discovered the following errors in the accounts.

1. The declaration and payment of $50,500 cash dividend was recorded as a debit to Interest Expense $50,500 and a credit to Cash $50,500.

2. A 10% stock dividend (1,400 shares) was declared on the $14 par value stock when the market price per share was $19. The only entry made was Stock Dividends (Dr.) $19,600 and Dividend Payable (Cr.) $19,600. The shares have not been issued.

3. A 4-for-1 stock split involving the issue of 361,000 shares of $5 par value common stock for 90,250 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,805,000 and a credit to Common Stock $1,805,000.

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  • Anonymous
    1 month ago

    so many cheaters.

  • 1 month ago

    Thanks for letting us know.

    I'm glad the chief accountant found these errors before they created their financial statements.

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