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Question 1: The board of directors of Westlake Ltd declared a cash dividend of $2.50 per share on 22,000 ordinary shares on 15 July 2016. The dividend is to be paid on 15 August 2016, to shareholders of record on 31 July 2016. The effects of the journal entry to record the declaration of the dividend on 15 July 2016 are to:
Group of answer choices
Option 1: decrease equity and decrease assets
Option 2: decrease equity and increase liabilities
Option 3: increase equity and decrease assets
Option 4: increase equity and increase liabilities
Financial Statement Analysis and Preparation
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