A corporation that follows IFRS, reported the following amounts in the shareholders' equity section:

Preferred shares, $8 cumulative dividend (100 000 shared authorized, 50 000 shares issued)	30 000
Common shares ( 1 000 000 authorized, 250 000 issued).	100 000
Contributed surplus*	145 000
Retained earnings	1 900 000
Retained earnings total	2 175 000*

* THe contributed surplus arose from the excess of proceeds over cost on a previous cancellation. Assume that Net icome for 2020 was 0$. During 2020, the company had the 6 transactions that affecct shareholders equity

QUESTION:

- Paid dividend on preferred shares and a $2 per share dividend on common shares. No dividend were declared in 2018. Board of directors declared dividends on December 15, 2020. The journal entry to account for dividend payment is:

A) Debit dividends payable 1 300 000 and credit cash 1 300 000

B) Debit dividends payable 900 000 and credit cash 900 000

C) Debit dividends payable 500 000 and credit shareholders equity 500 000

D) Debit dividends declared 900 000 and credit contributed surplus 900 000