On December 15, 2019, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2020, of $0.90 per share on the 2,000,000 common shares outstanding. On December 15, 2019, Cross Corporation should

Multiple Choice

• decrease retained earnings $1.80 million and increase liabilities by $1.80 million.

• not prepare a journal entry because the event had no effect on the corporation's financial position until 2020.

• decrease retained earnings $1.80 million and increase expenses $1.80 million.

• decrease cash $1.80 million and decrease retained earnings $1.80 million.