[The following Information applies to the questions displayed below] Homestead Oil Corp. was Incorporated on January 1, 2019, and issued the following stock for cash: 800.000 shares of no-par common stock were authorized: 150.000 shares were issued on January 1, 2019, at $38 per share. 200.000 shares of $100 par value, 6.5%% cumulative, preferred stock were authorized; 90.000 shares were Issued on January 1, 2019, at $122 per share. Net Income for the years ended December 31, 2019 and 2020 was $2,600,000 and $5,600,000, respectively. No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $3,600,000, payable on February 12. 2021, to holders of record as of January 19, 2021. Award: 1.66 points Required: 1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses 11 11 11 1 11 11 1 11 + + + 2. Use the horizontal model for the declaration of dividends on December 28, 2020. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses 1 11 3. Use the horizontal model for the payment of dividends on February 12, 2021. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities + Stockholders' Equity Net Income Revenues Expenses T=F