When the board of directors approves a dividend be paid to its shareholders in 30 days, the company should: O Decrease net income by recording dividend expense and decrease cash. Decrease net income by recording dividend expense and increase dividends payable. Decrease retained earnings and decrease cash. Decrease retained earnings and increase dividends payable. Review: On October 1st, a company borrowed $50,000 from Eighth National Bank on a 1-year, 10% note. If the company's fiscal year ends on December 31st, a year-end adjust to the financial statements is required to increase: interest expense by $5,000. notes payable by $1,250. interest payable by $1,250. prepaid interest by $3,750