Mozart & Company issued 1,500 shares of 5%, $50 par value, preferred stock for $150,000. The board of directors declared dividends on December 30, to be paid in January. What journal entry is necessary to record the declaration of dividends?

A. Dividendslong dash preferred 3,750

Dividends payablelong dash preferred 3,750

B. Dividends 7,500

Cash 7,500

C. Dividendslong dash preferred 7,500

Dividends payablelong dash preferred 7,500

D. Dividends 3,750

Cash 3,750