29. Fashion Retailers, Inc. declared a dividend of $.60 a share on 100,000 shares of outstanding stock on December 17, 20X4 to shareholders of record on December 28, 20X4, payable on January 12, 20X5. Which answer choice below best describes the effect of the dividend on the accounts of Fashion Retailers Inc. on the payment date?

a. The liability account Dividends payable will increase by $60,000 and the contra-equity account Dividends (which decreases the equity account Retained earnings) will increase by $60,000.

b. The liability account Dividends payable will decrease by $60,000 and the contra-equity account Dividends (which decreases the equity account Retained earnings) will increase by $60,000.

c. The asset account Cash will decrease by $60,000 and the contra-equity account Dividends (which increases the equity account Retained earnings) will increase by $60,000.

d. The asset account Cash will decrease by $60,000 and the Dividends payable account will decrease by $60,000.