Choose the best answer to each question below. You may use some answers more than or you may end up not using some answers at all. An important date for the distribution of dividends in which the dividend is paid and journal entry is necessary to reduce applicable assets and liabilities. An important date for the distribution of dividends in which the dividend is declared and a journal entry is necessary to reduce retained earnings and increase liabilities. Distribution of capital or earnings on the stockholder's capital that is declared by the company's Board of Directors. In order to meet legal requirements or contractual obligations, the Board of Directors may formally designate a portion of retained earnings as unavailable for dividends. An appropriate description of the item does not appear (i.e., none of the above)