The following problems require you to indicate the financial statement effects of equity financing transactions (ignore income tax effects). Make sure that, within each major classification, you indicate the subclassification under which the account will appear.

1. Effects of equity transactions-Cash Dividend (Common stock). The following is the owners equity section of Billboard Co. at November 1, 2004:

Common stock($1 par value, 300,000 shares authorized,200,000 issued and outstanding)	$200,000
Additional paid-in capital on common stock	$900,000
Retained earnings	$1,600,00

On November 1, 2004, Billboard declares a $0.40/share dividend payable on January 9, 2005, to shareholders of record on December 31, 2004