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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

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