Before preparing financial statements for the current year, the chief accountant for Sunland Company discovered the following errors in the accounts. 1. The declaration and payment of $54,000 cash dividend was recorded as a debit to Interest Expense $54,000 and a credit to Cash $54,000. 2. A 10% stock dividend ( 1,400 shares) was declared on the $11 par value stock when the market price per share was $17. The only entry made was Stock Dividends (Dr.) $15,400 and Dividend Payable (Cr.) $15,400. The shares have not been issued. 3. A 4-for-1 stock split involving the issue of 368,000 shares of $5 par value common stock for 92,000 shares of $20 par value common stock was recorded as a debit to Retained Earnings $1,840,000 and a credit to Common 5 tock $1,840,000. 1. Deci 31 2. Deci.31 Dec. 31