46

On February 17,2011, the board of directors of Ronaldo Company declared a cash dividend to be distributed on September 5, 2011. Which of the following statements are correct? (multiple choice)

(1) The entry made on September 5th reduces net income.

(2) The entry made on February 17th increases current liabilities

(3) The entry made on September 5th reduces stockholder's equity

(4) The entry made on February 17th reduces stockholder's equity.