Refer to the information in BE10-12. Determine the financial statement effects for (1) the declaration of dividends on October 1 and (2) the payment of dividends on October 31.

Data from in BE10-12

Divine Apparel has 4,000 shares of common stock outstanding. On October 1, the company declares a $0.75 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. Record all transactions on the appropriate dates for cash dividends.