[dianas]

If a company paid dividends to its stockholder's in the amount of $3,000. What happens as a result of this transaction? How does it affect the assets, liabilities and net income?

[ScottGem]

First the member discussions forum is for general discussion type questions not for specific questions. So I moved your post to the appropriate forum.

Second, if this is a homework question please don't ask or expect us to do your work for you. If you post what you think the answer is, we can critique it.

[dianas]

Dividends iknow usually are known as owner's equity and I am assuming that it is paid in cash but what confuses me is the decrease or increase. I figure cash would probably decrease, but is it also a liability

[CaptainForest]

When you declare the dividends…
Dr. Owner's Equity (dividends)
Cr. Liability (dividends payable)

When you then pay the dividends…
Dr. Liability (dividends payable)
Cr. Assets (cash)

So on net, assets go down, equity goes down, liabilities stay the same