On December 31, 2020, Carla Vista Corporation had the following shareholders' equity accounts: CARLA VISTA CORPORATION Balance Sheet (partial) December 31, 2020 Shareholders' equity Common shares (unlimited number of shares authorized, 95,000 issued) Retained earnings Total shareholders' equity $1,145,000 560,000 $1,705,000 During the year, the following transactions occurred: Jan. 15 July 1 Dec. 15 Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15. Announced a 2-for-1 stock split. The market price per share on the date of the announcement was $18. Declared a 15% stock dividend to shareholders of record on December 30, distributable on January 15. On December 15, the market price of each share was $9; on December 30, $10; and on January 15, $9. Determined that profit before income tax for the year was $413,000. The company has a 25% income tax rate. 31 Account Titles and Explanation Debit 95000 (To record declaration of cash dividend.) No Entry o No Entry 95000 Cash (To record payment of dividend.) Memo: 2-for-1 stock split increases the number of shares to (To record declaration of stock dividend.) No Entry O No Entry To close Income Summary.) (To close dividends to retained earnings.)