Le Bateau Company issued 70,000 shares of 5%, 100 par value preference shares for 114 per share. This transaction will increase the Share Premium-Preference account by 980,000. 1. increase the Cash account by 7,000,000. 2. increase the Retained Earnings account by 980,000. 3. increase the Share Capital-Preference account by 980,000. If a corporation declares a 10% ordinary share dividend, the account to be debited on the date of declaration is Ordinary Share Dividends Distributable. 1. Share Capital-Ordinary. 2. Share Premium-Ordinary. 3. Retained Earnings. If a shareholder receives a dividend that reduces retained earnings by the fair value of the shares, the shareholder has received a large share dividend. 1. cash dividend. 2. contingent dividend. 3. small share dividend