On September 12,2012,Infinity Enterprises Declared a $7,000 Cash Dividend Payable

On September 12,2012,Infinity Enterprises declared a $7,000 cash dividend payable on October 1,2012.The effect of the October 1,2012,transaction on Infinity Enterprises would be to

A) increase the balance in the cash account and decrease the balance in the prepaid dividend account by $7,000.
B) decrease the balance in the cash account and decrease the balance in the dividend payable account by $7,000.
C) decrease the balance in the cash account and increase the balance in the dividend expense account by $7,000.
D) decrease the balance in the cash account and increase the balance in the prepaid dividend account by $7,000.
E) decrease the balance in the cash account and decrease the balance in the retained earnings account by $7,000.