On December 15, 2009, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2010 of $.80 per share on the 2,000,000 common shares outstanding. On December 15, 2009, Cross Corporation should

a. Not prepare a journal entry because the event had no effect on the corporations financial position until 2010.

b. Decrease retained earnings $1.6 million and increase expenses $1.6 million.

c. Decrease retained earnings $1.6 million and increase liabilities by $1.6 million.

d. Decrease cash $1.6 million and decrease retain earnings $1.6 million.