Gleneagles Corporation earned net income of \(\$ 70,000\) during the year ended December 31, 2020. On December 15 , Gleneagles had declared the annual cash dividend on its \(\$ 0.50\) preferred shares \((10,000\) shares issued for \(\$ 100,000)\) and a \(\$ 0.60\) per share cash dividend on its common shares \((25,000\) shares issued for \(\$ 50,000)\). Gleneagles then paid the dividends on January 4, 2021.

Journalize the following for Gleneagles Corporation:

a. Declaring the cash dividends on December 15,2020

b. Paying the cash dividends on January 4, 2021 Did Retained Earnings increase or decrease during 2020? If so, by how much?