A Corporation Reported Net Income of $60,000, Declared and Paid

Multiple Choice

A corporation reported net income of $60,000, declared and paid cash dividends of $80,000, and issued 3,000 shares of $2 par common stock at $15 per share during the year. What total effects would these transactions have on the following stockholders' equity accounts? Retained Earnings Common Stock

A) increase increase
B) increase decrease
C) decrease decrease
D) decrease increase