Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 23,000 shares authorized, 10,800 shares issued, and 9,200 shares of common stock outstanding. The journal entry to record the dividend declaration is:

A. Debit Common Dividends Payable $5,400; Credit Cash $5,400

B. Debit Common Dividends Payable $4,600; Credit Cash $4,600

C. Debit Retained Earnings $4,600; Credit Common Dividends Payable $4,600

D. Debit Retained Earnings $5,400; Credit Common Dividends Payable $5,400

E. Debit Retained Earnings $11,500; Credit Common Dividends Payable $11,500