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

1. 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. 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.

Prepare the correcting entries at December 31.