6) and should TiO Transaction TRANSACTION 10. DIVIDENDS The corporation pays a dividend of 1300 cash to Ray and Barbara Neal, the shareholders of Softbyte SA. This transaction results in an equal decrease in assets and equity Basic The asset Cash decreases 1,300, and equity decreases 1,300 due to dividends Equity Retained Earnings Assets = Liabilities + Accounts Share Cash + Accounts Receivable +Supplies+ Equipment Payale Capital Rev. Exp.Div Equation Analysis (10)-1,300 9.350 1,400 1,600 7,000 1,600 15,000 4,700 1,950 1,300 Dividends 1,300 E 8,050+ 1,400+1,600+7,0001,600+ 15,000+4,700- 1,950- 18,050 18,050 Note that the dividend reduces retained earnings, which is part of equity. Divi- dends are not expenses. Like shareholders' investments, dividends are exclud in determining net income 6) and should TiO Transaction TRANSACTION 10. DIVIDENDS The corporation pays a dividend of 1300 cash to Ray and Barbara Neal, the shareholders of Softbyte SA. This transaction results in an equal decrease in assets and equity Basic The asset Cash decreases 1,300, and equity decreases 1,300 due to dividends Equity Retained Earnings Assets = Liabilities + Accounts Share Cash + Accounts Receivable +Supplies+ Equipment Payale Capital Rev. Exp.Div Equation Analysis (10)-1,300 9.350 1,400 1,600 7,000 1,600 15,000 4,700 1,950 1,300 Dividends 1,300 E 8,050+ 1,400+1,600+7,0001,600+ 15,000+4,700- 1,950- 18,050 18,050 Note that the dividend reduces retained earnings, which is part of equity. Divi- dends are not expenses. Like shareholders' investments, dividends are exclud in determining net income