What impact does Target’s dividend announcement have on its balance sheet?

Target Corporation (NYSE:TGT) recently made a dividend announcement. The announcement read:

MINNEAPOLIS, Sept. 23, 2021 /PRNewswire/ — The board of directors of Target Corporation (NYSE:TGT) has declared a quarterly dividend of 90 cents per common share. The dividend is payable December 10, 2021 to shareholders of record at the close of business November 17, 2021. The 4th quarter dividend will be the company’s 217th consecutive dividend paid since October 1967 when the company became publicly held.

Questions

1. On which date will Target record a liability for the dividend?
2. On which date will Target pay the cash dividend?
3. On the date of declaration, what will be the impact (increase, decrease, no effect) on Target’s: (a) assets; (b) liabilities; and (c) stockholders’ equity?
4. On the date of payment, what will be the impact (increase, decrease, no effect) on Target’s: (a) assets; (b) liabilities; and (c) stockholders’ equity?

Copyright 2021 Wendy M. Tietz, LLC