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

The declaration and payment of $$55,000$ cash dividend was recorded as a debit to Interest Expense $$55,000$ and a credit to Cash $$55,000.$

A $10\%$ stock dividend $(1,500$ shares$)$ was declared on the $$10$ par value stock when the market price per share was $$20.$ The only entry made was Stock Dividends $($Dr$.)$ $$15,000$ and Dividend Payable $($Cr$.)$ $$15,000.$ The shares have not been issued.

A $4-$for$-1$ stock split involving the issue of $370,000$ shares of $$5$ par value common stock for $92,500$ shares of $$20$ par value common stock was recorded as a debit to Retained Earnings $$1,850,000$ and a credit to Common Stock $$1,850,000.$

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

Debit

Credit

Dec. $31$

Cash

Cash Dividends

Dec. $31$