A company is authorized to issue 500,000 shares of common stock. There are 5,000 outstanding shares. The board
declares a cash dividend of $.50 per share on December 1, 2019. What is included in the journal entry to record the declaration of the dividend?
a. A debit to Cash Dividends Declared of $2,500
b. A credit to Retained Earnings of $2,500
c. A debit to Cash Dividends Declared of $250,000
d. No entry is made