Fetzer Company declared a $0.50 per share cash dividend. The company has 460,000 shares authorized, 437,000 shares issued, and 18,400 shares in treasury stock. The journal entry to record the payment of the dividend is:

Multiple Choice

• Debit Common Dividends Payable $209,300; credit Cash $209,300.

• Debit Common Dividends Payable $218,500; credit Cash $218,500.

• Debit Retained Earnings $218,500; credit Common Dividends Payable $218,500.

• Debit Retained Earnings $209,300; credit Common Dividends Payable $209,300.

• Debit Retained Earnings $230,000; credit Common Dividends Payable $230,000.