Q10-69. Loco’s Foods has outstanding 600 shares of 8% preference shares, $100 par value, and 1,600 shares of ordinary shares, $35 par value. Loco’s declares dividends of $15,800. The correct entry is:

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A1 A D 1234567899===== a. Dividends expense Cash 15,800 15,800 b. Dividends payable, preference 4,800 Dividends payable, ordinary 11,000 Cash 15,800 C Retained earnings 15,800 Dividends payable, preference 7,900 10 Dividends payable, ordinary 7,900 11 12 d. Retained earnings 15,800 13 Dividends payable, preference 4,800 14 Dividends payable, ordinary 11,000 15