On February 16,a Company Declares a 34' Dividend to Be

Multiple Choice

On February 16,a company declares a 34' dividend to be paid on April 5 to shareholders of record on March 9.There are 2 million shares of common shares outstanding and 100,000 shares of treasury shares.What accounting entries does the company make on April 5?

A) A debit to Dividends Payable and a credit to Cash for $714,000.
B) A debit to Dividends Declared and a credit to Dividends Payable for $680,000.
C) A debit to Dividends Payable and a credit to Cash for $646,000.
D) A debit to Dividends Declared and a credit to Dividends Payable for $646,000.