2. On December 15, 2013, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2014 of $.80 per share on the 2,000,000 common shares outstanding. On December 15, 2013, Cross Corporation should

not prepare a journal entry because the event had no effect on the corporation's financial position until 2014.

decrease retained earnings $1.6 million and increase expenses $1.6 million.

decrease retained earnings $1.6 million andincrease liabilities by $1.6 million.

decrease cash $1.6 million and decrease retained earnings $1.6 million.