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 dividend on March 1 affect the financial statements? Assets=Liab.+EquityRev.?Exp.=Net Inc.Cash FlowA.NA=(9,000)+(9,000)NA?9000=(9,000)NAB.NA=9,000+(9,000)NA?NA=NANAC.(4,500)=NA+(4,500)NA?NA=NA(4,500) FAD.NA=4,500+(4,500)NA?NA=NANA
A. Choice A
B. Choice B
C. Choice C
D. Choice D
Answer: D
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