On December 1, YR11 the board of directors of Apple Inc. declared a dividend of $2 per share on its common stock to holders of record on December 20, YR11. The board specified the date of payment as January 30, YR12. Information regarding shares authorized, issued, and outstanding are provided below.

Description	Date of Declaration (December 1, YR11)	Date of Record (December 20, YR11)	Date of Payment (January 30, YR12)
Shares Authorized	200	200	200
Shares Issued	150	150	175
Shares Outstanding	100	100	150
Shares Held as Treasury Stock	50	50	25

The differences in share amounts are due to stock transactions that occurred in January, YR12.

The general ledger entry at the date of declaration is:

1. 1. Retained Earnings 200

Dividends Payable 200

2. Retained Earnings 300

Dividends Payable 300

3. Dividend Expense 300

Dividends Payable 300

4. Dividend Expense 300

Dividends Payable 300

5. None of the above.

The general ledger entry at the date of payment is:

1. Dividends Payable 300

Cash 200

Dividend income 100

2. Dividends Payable 300

Cash 200

Paid-in capital-treasury Dividends 100

3. Dividends Payable 300

Cash 300

4. Dividends payable 200

Cash 200

5. None of the above