A Company's Board of Directors Votes to Declare a Cash

Multiple Choice

A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding.The journal entry to record the declaration of the cash dividend is:

A) Debit Dividend Expense $12,000;credit Cash $12,000.
B) Debit Dividend Expense $12,000;credit Common Dividend Payable $12,000.
C) Debit Common Dividend Payable $12,000;credit Cash $12,000.
D) Debit Retained Earnings $12,000;credit Common Dividend Payable $12,000.
E) Debit Common Dividend Payable $12,000;credit Retained Earnings $12,000.