A company declared a cash dividend on its common stock in December 2013, payable in January 2014. Retained Earnings would

a. decrease on the date of payment.

b. not be affected on the date of payment.

c. not be affected on the date of declaration.

d. increase on the date of declaration.

Which of the following is true of a premium on bonds payable?

a. It is an account that appears only on the books of the investor.

b. It increases when amortization entries are made until it reaches its maturity value.

c. It is a contra-stockholders' equity account.

d. It decreases when amortization entries are made until its balance reaches zero at the maturity date.