Before preparing financial statements for the current year, the chief accountant for Jeckel Ltd discovered...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Before preparing financial statements for the current year, the chief accountant for Jeckel Ltd discovered the following errors in the accounts: 1 2 The declaration and payment of a $ 13,600 cash dividend were recorded as a debit to interest expense $13,600 and a credit to cash $ 13,600 A 10% share dividend (800 shares) was declared on the $ 17 shares. The directors had determined that the share dividend should be at the market value of $ 19. The only entry made was: retained earnings (Dr) $ 13,600 and dividend payable (Cr) 13,600. The shares have not been issued. Required Prepare the correcting entries at 31 December (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not ndent manually) Jeckel Ltd General journal Debit Credit Date Account and explanation $ Dec. 31 (To correct error in recording dividend paid as interest expense) Dec. 31 (To record the dividend as a share dividend and at the correct amount)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
