DE13-13 Colombia Coffee Company earned net income of $85,000 during the year ended December 31, 20X3. On December 15, Colombia declared the annual cash dividend on its 6% preferred stock (10,000 shares with total par value of $100,000) and a $0.50 per share cash dividend on its common stock (50,000 shares with total par value of $250,000). Colombia then paid the dividends on January 4, 20X4. Journalize for Colombia Company

a. Declaring the cash dividends on December 15

b. Closing net income to Retained Earnings on December 31, 20X3

c. Paying the cash dividends on January 4, 20X4 Did Retained Earnings increase or decrease during 20X3? By how much?