LO 9) Fetzer Company declared a $0.50 per share cash dividend. The company has 260,000 shares authorized, 247,000 shares issued, and 10,400 shares in treasury stock. The journal entry to record the dividend declaration is:

Multiple Choice

Debit Retained Earnings $123,500; credit Common Dividends Payable $123,500.

Debit Retained Earnings $130,000; credit Common Dividends Payable $130,000.

Debit Retained Earnings $118,300; credit Common Dividends Payable $118,300.

Debit Common Dividends Payable $118,300; credit Cash $118,300.

Debit Common Dividends Payable $123,500; credit Cash $123,500.