A company declared a $0.5 per share cash dividend. The company has 210,000 shares authorized, 200,000 shares issued and outstanding. The journal entry to record the payment of the dividends is:

Select one:

a. Debit Cash Dividends 105,000; Credit Dividends Payable 105,000

b. Debit Retained Earnings 100,000; Credit Cash Dividends 100,000

c. Debit Dividends Payable 100,000; credit Cash 100,000.

d. Debit Dividends Payable 95,000; Credit Cash 95,000.