Before preparing financial statements for the current year, the chief accountant for Oriole Company discovered the following errors in the accounts. 1. The declaration and payment of $47,000 cash dividend was recorded as a debit to Interest Expense $47,000 and a credit to Cash $47,000.
2. A 10% stock dividend (1,100 shares) was declared on the $10 par value stock when the market price per share was $19. The only entry made was Stock Dividends (Dr.) $11,000 and Dividend Payable (Cr.) $11,000. The shares have not been issued.
3. A 4-for-1 stock split involving the issue of 354,000 shares of $5 par value common stock for 91,750 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,835,000 and a credit to Common Stock $1,835,000.

Required:
Prepare the correcting entries at December 31.

Oriole Company

Correcting Journal Entries:

1. Debit Dividends $47,000

Credit Interest Expense $47,000

To correct the error.

2. No corrections required

3. Debit Common Stock $1,835,000

Credit Retained Earnings $1,835,000

To correct the error.

Explanation:

a) Data and Analysis:

1. Dividends $47,000 Interest Expense $47,000

2. No corrections required

3. Common Stock $1,835,000 Retained Earnings $1,835,000

b) When a stock split is done, there is no journal entry involving an amount of money.  What is recorded is just a memo entry.  The memo entry serves to notify that the number of Oriole shares and the par value per share have changed to reflect the reality.

answer; maintain a safe following distance;

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.