Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

Declared a $8/shr. Cash Dividend on the 1,000 shrs. of Pref. Sk. and $10/shr. On 10,000 shrs. of common stock.

		Increase the liability dividends payable and decrease the stockholders' equity retained earnings $108,000
		Decrease the asset cash and the stockholders' equity retained earnings $108,000
		Increase the liability dividends payable and decrease the stockholders' equity retained earnings $100,000
		Decrease the liability dividends payable and Increase the stockholders' equity retained earnings $108,000