On March 1, Year 1, Gilmore Incorporated Declared a Cash

Multiple Choice

On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred stock. The dividend will be paid on May 1, Year 1 to the stockholders of record as of April 1, Year 1.


-How will the entry to record the declaration of the dividend on March 1 affect the elements of the financial statements?

A) Option A
B) Option B
C) Option C
D) Option D