Before preparing financial statements for the current year, the chief accountant for Sheridan Company discovered the following errors in the accounts. 1. 2. 3. The declaration and payment of $48,000 cash dividend was recorded as a debit to Interest Expense $48,000 and a credit to Cash $48,000. A 10% stock dividend (1.100 shares) was declared on the $11 par value stock when the market price per share was $17. The only entry made was Stock Dividends (Dr.) $12,100 and Dividend Payable (Cr) $12.100. The shares have not been issued. A 4-for-1 stock split involving the issue of 356,000 shares of $5 par value common stock for 89,000 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,780,000 and a credit to Common Stock $1,780,000. 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 1 Dec. 31 Cash Dividends Interest Expense Dec. 2 Retained Earnings 31 Dividends Payable Stock Dividends Common Stock Dividends Distributable Debit 48,000 18,700 12.100 Credit 48,000 12.100 18,700 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 Dec. 1. Cash Dividends 31 interest Expense Dec 2. Retained Earnings 31 Dividends Payable Stock Dividends Common Stock Dividends Distributable Dec. 3. Common Stock 31 Retained Earnings Debit 48.000 18,700 12.100 1780000 Credit 46,000 12.100 18,700 1780000