- / 15 Question 1 of 4 View Policies Current Attempt in Progress Before preparing financial statements for the current year, the chief accountant for Cullumber Ltd. provided the following information regarding the accounting for dividends and stock splits: 1 2. Cullumber has 15,600, $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. A5% stock dividend (1,000 shares) was declared on the common shares when the fair value per share was $12. To reco the declaration, Retained Earnings was debited and Dividends Payable was credited. The shares have not been issued The company declared a 2-for-1 stock split on its 15,600, $4 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 $1,092,000 and a credit to Preferred Shares of $1,092,000. 3 Determine if each of the above transactions was recorded correctly and, if not, prepare the correct entry. (Credit account titles automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account to and enter 0 for the amounts.) Debit Credit Date Account Titles and Explanation (1) Dec. 31 (To record payment of cash dividend.) (2) Dec. 31