Use the Following Information for Questions

question 103

Multiple Choice

Use the following information for questions.
On July 15, 2018, the board of directors of George Easton Limited declared a cash dividend of $0.50 per share on 84,000 common shares. The dividend is to be paid on August 15, 2018, to shareholders of record on July 31, 2018.
-The journal entry to be recorded on July 15, 2018, will include a

• A) debit to Dividends Payable.
• B) debit to Dividends Declared.
• C) credit to Cash.
• D) credit to Retained Earnings.