The Board of Directors of Irondale Corporation Declared a Cash

Multiple Choice

The board of directors of Irondale Corporation declared a cash dividend of $2.50 per share on 57,000 shares of common stock on June 14, 2010. The dividend is to be paid on July 15, 2010, to shareholders of record on July 1, 2010. The effects of the entry to record the declaration of the dividend on June 14, 2010 , are to

A) decrease stockholders' equity and increase liabilities.
B) increase stockholders' equity and increase liabilities.
C) decrease stockholders' equity and decrease assets.
D) increase stockholders' equity and decrease assets.