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Required information [The following information applies to the questions displayed below.] Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets: May 31, 2019 Paid-in capital: Preferred stock, $120 par value, 9%, cumulative, 200,000 shares authorized, 140,000 shares issued and outstanding Common stock, $5 par value, 1,000,000 shares authorized, 600,000 and 1 540,000 shares issued, respectively Additional paid-in capital Retained earnings Less: Treasury common stock, at cost; 72,000 shares and 68,000 shares, respectively Total stockholders' equity $16,800,000 ? 26,100,000 36,200,000 (4,412,000) ? April 30, 2019 $16,800,000 2,700,000 23,220,000 34,640,000 (4,148,000) $73,212,000 e-2. Assume that on June 1 the board of directors declared a cash dividend of $0.60 per share on the outstanding shares of common stock. The dividend will be payable on July 15 to stockholders of record on June 15. Identify the impact this action will have on the June 30 balance sheet and on the income statement for June. (Select all that apply.)

-2. Assume that on June 1 the board of directors declared a cash dividend of $0.60 per share on the outstanding shares of common stock. The divid will be payable on July 15 to stockholders of record on June 15. Identify the impact this action will have on the June 30 balance sheet and on the inco -tatement for June. (Select all that apply.) Check All That Apply The June 30, 2019, balance sheet will reflect a reduction in retained earnings and an increase in dividends payable for the same amount. The June 30, 2019, balance sheet will reflect a reduction in dividends payable and an increase in retained earnings for the same amount. Dividends declared have no effect on the income statement. Dividends declared will result in a reduction of net profit.