A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. The journal entry to record the declaration of the cash dividend is:

a) Debit Dividend Expense $12,000; credit Cash 412,000.

b) Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000.

c) Debit Common Dividend Payable $12,000; credit Cash $12,000.

d) Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000.

e) Debit Common Dividend $12,000; credit Retained Earnings $12,000.