The balance sheet of Despot Incorporated included the follow…

The balance sheet of Despot Incorporated included the following: Common stock, 25 million shares at $20 par $ 500 million Paid-in capital—excess of par 3,000 million Retained earnings 980 million In February, Despot declared cash dividends of $12 million that were paid in April of that year. What effect did the April transaction have on Despot’s accounts?