The board of directors of Western Ltd declared a cash dividend of $1.50 per share on 42 000 shares of ordinary shares on 15 July, 2014. The dividend is to be paid on 15 August, 2014, to shareholders of record on 31 July, 2014. The effects of the journal entry to record the payment of the dividend on 15 August, 2014, are to:

increase shareholders equity and increase liabilities.

increase shareholders equity and decrease assets.

decrease liabilities and decrease assets.

decrease shareholders equity and decrease liabilities.