On 30 June 2021 the directors of Amy Ltd decided that shareholders should receive a final dividend of 30 cents for every 5 shares that they held in Amy Ltd. Shareholder approval is not needed.

On 30 June 2021 the following detail was available from the draft statement of financial position:

Equity	30 June 2021
Share capital (ordinary shares issued at $2)	$220,000
Retained earnings	$35,000
Total equity	$255,000

To recognise the final dividend, the directors should:

a.

DR Retained Earnings $6,600, CR Cash $6,600

b.

DR Retained Earnings $13,200, CR Dividend Payable $13,200

c.

DR Retained Earnings $6,600, CR Dividend Payable $6,600

d.

DR Retained Earnings $13,200, CR Cash $13,200