Kingston Co. declared a dividend of $1 per share on its 100,000 shares of common stock on Dec 15, 2012, and the dividends will be distributed in cash to shareholders on January 10, 2013. Which of the following is true?

Kingston's liabilities increase by $100,000 on Dec 15, 2012

Kingston's assets decrease by $100,000 on Dec 15, 2012.

Kingston should recognize an adjusting entry for the dividend because this is a transaction that cut across two periods.

Kingston's 2012 net income is reduced by $100,000 because of the dividends