Question: Glenwood Corporation earned net income of $90,000 during the year ended December 31, 2021. On December 15, Glenwood declared the annual cash dividend on its

Glenwood Corporation earned net income of $90,000 during the year ended December 31, 2021. On December 15, Glenwood declared the annual cash dividend on its 1% preferred stock (13,000 shares with total par value of $130,000) and a $0.45 per share cash dividend on its common stock (65,000 shares with total par value of $650,000). Glenwood then paid the dividends on January 4, 2022.

Journalize the following for Glenwood:

a. Declaring the cash dividends on December 15, 2021

b. Paying the cash dividends on January 4, 2022

Did retained earnings increase or decrease during 2021? By how much?

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