The Board of Marpa, Inc

Multiple Choice

The board of Marpa, Inc. declared a $3 per share cash dividend on common stock. The corporation has 5,000 shares of common stock outstanding. The entry required to declare the dividend is:

A) debit Cash; credit Common Dividends Payable.
B) debit Cash Dividends; credit Common Dividends Payable.
C) debit Common Dividends Payable; credit Cash.
D) debit Retained Earnings; credit Dividends Payable.