On June 1, a Board of Directors Declared a $3

Multiple Choice

On June 1, a board of directors declared a $3 per share cash dividend, payable on June 30 to all common stockholders of record on June 15. The company has 10,000 shares of common stock authorized, 1,000 shares issued, and 200 shares in the treasury. The entry to record the dividend declaration increases

A) a liability account by $2,400.
B) an asset account by $3,000.
C) an expense account by $2,400.
D) a stockholders' equity account by $3,000.