On 1 November 2016,Oster Ltd Declared a Dividend of $3

Multiple Choice

On 1 November 2016,Oster Ltd declared a dividend of $3.25 per share.Oster Ltd has 28,000 shares of ordinary shares outstanding and no preference shares.Which of the following is the journal entry needed to record the declaration of dividends?

A) debit Retained earnings $91,000 and credit Cash $91,000
B) debit Cash $91,000 and credit Dividends payable,ordinary $91,000
C) debit Dividends payable,ordinary $91,000 and credit Retained earnings $91,000
D) debit Retained earnings $91,000 and credit Dividends payable,ordinary $91,000