What cross corporation should

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Problem 1: On December 15, 2020, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2015 of $.80 per share on the 2,000,000 common shares outstanding. The accounting period ends December 31. Because of this action, on December 15, 2020, Cross Corporation should

a) Make no journal entry because the event had no financial effect until 2021.
b) Decrease retained earnings $1.6 million and increase contributed capital $1.6 million.
c) Decrease retained earnings $1.6 million and increase liabilities by $1.6 million.
d) Decrease cash $1.6 million and decrease retained earnings $1.6 million.
e) increase contributed capital $1.6 million and decrease liabilities $1.6 million.

Reference no: EM132795084

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