Before preparing nancial statements for the current year, the chief accountant for Crane Ltd. provided the following information regarding the accounting for dividends and stock splits: 1. Crane has 19,600, $4 noncumulative preferred shares issued. It paid the preferred shareholders the quarterly dividend, and recorded it as a debit to Dividends Expense and a credit to Cash. 2. A 5% stock dividend [1.000 shares) was declared on the common shares when the fair value per share was $12. To record the declaration, Retained Earnings was debited and Dividends Payable was credited. The shares have not been issued yet. 3. The company declared a 2-for- 1 stock split on its 19,600. 54 noncumulative preferred shares. The average per share amount of the preferred shares before the split was $70.The split was recorded as a debit to Retained Earnings of $1,372,000 and a credit to Preferred Shares of $1,372,000. Date Account Titles and Explanation Debit Credit (1) Dec. 31 (To record payment of cash dividend.) (2) Dec. 31 (To record declaration of stock dividend.) (3) Dec. 31