Reference no: EM132670221

Problem 1: What are the FS Effects of the following 12/31, year-end dividend declaration transaction:

Fox Co. declares total dividends of $200,000, with 60% properly allocated to preferred shareholders and paid on declaration date, and with the remaining 40% properly allocated to common shareholders to be paid next fiscal year on 1/15.

Group of answer choices

Option 1: A: D L: I SE: NE NI: NE CFs: D

Option 2: A: D L: D SE: D NI: NE CFs: D

Option 3: A: D L: I SE: D NI: D CFs: D

Option 4: A: D L: I SE: D NI: NE CFs: D