Double Horizontal Line Corporation has 10,000 shares of common stock and 0 shares of preferred stock outstanding. On January 1, 20X1, it declared dividends of $20,000 to be paid to the shareholders on record as of February 1, 20X1. The dividends were paid on January 1, 20X2.

Which of the following is part of the journal entry to be made on January 1, 20X1?

Group of answer choices

DEBIT to Dividends Payable for $20,000

CREDIT to Cash for $20,000

DEBIT to Retained Earnings for $20,000

DEBIT to Common Stock Dividends for $20,000

No journal entry is needed on this day

Which of the following is part of the journal to be made on December 31, 20X1?

Double Horizontal Line Corporation has 10,000 shares of common stock and 0 shares of preferred stock outstanding. On January 1, 20X1, it declared dividends of $20,000 to be paid to the shareholders on record as of February 1, 20X1. The dividends were paid on January 1, 20X2.

Which of the following is part of the journal to be made on December 31, 20X1?