On November 1, 2015, Oster Company Declared a Dividend of $3.00

Multiple Choice

On November 1, 2015, Oster Company declared a dividend of $3.00 per share. Oster Company has 20,000 shares of common stock outstanding and no preferred stock. Which of the following is the journal entry needed to record the declaration of dividends?

A) Debit Dividends Payable-Common $60,000 and credit Retained Earnings $60,000.
B) Debit Retained Earnings $60,000 and credit Cash $60,000.
C) Debit Retained Earnings $60,000 and credit Dividends Payable-Common $60,000.
D) Debit Cash $60,000 and credit Dividends Payable-Common $60,000.