On June 20, 2021, X Corporation declared and paid a $56,000 cash dividends. On June 20, 2021, X Corporation recorded the following in the accounting books: *

Debit $56,000 to Dividends, Credit $56,000 to Dividends Payable

Debit $56,000 to Cash, Credit $56,000 to Dividends Payable

Debit $56,000 to Dividends Payable, Credit $56,000 to Cash

None of the above

The following entry was recorded on October 25, 2021: * Date October 25, 2021 Credit Accounts and explanation Land Building Equipment Cash Notes Payable Common Stock Debit 1,000,000 600,000 400.000 150,000 650,000 1.200,000 The transaction above involves: The creation of an informal liability by $650,000 A decrease in owner's equity by $1,200,000 The purchase of PPE for $2,000,000 None of the above