Question 6 - Equity (51 points) Before preparing financial statements for the current year, the chief accountant for Guljeon Corp. discovered the following errors in the accounts. (a) The declaration and payment of $56,500 cash dividend was recorded as a debit to Interest Expense $56,500 and a credit to Ordinary Share Dividends Distributable $56,500. b (b) A 10% share dividend (1,300 shares) was declared on the $20 par value shares when the market price per share was $34. The only entry made was Share Dividends (Dr.) $26,000 and Dividend Payable (Cr.) $26,000. The shares have not been issued. A share split involving the issue of 300,000 shares of $10 par value ordinary shares for 100,000 shares of $20 par value ordinary shares was recorded as a debit to Retained Earnings $2,000,000 and a credit to Share CapitalOrdinary $2,000,000. (d) A stock repurchase of 5,000 shares of the company's own stock at $40 per share (with $10 par value per share) was recorded as a debit to Share CapitalOrdinary $50,000 and a credit to Cash $50,000. (e) An issuance of 10,000 shares to acquire land recently advertised for sale at $90,000 was recorded as a debit to Land $90,000 and a credit to Cash $90,000. The company's $10 par value shares are actively traded at $12 per share. Assume that the above errors were discovered before closing. Question 6 (continued) Item Debit Credit (a) (b) (c) (d) (e)