On December 31 2014 Stanford inc has 1500 shares of 6% $100 dollar par value cumulative preferred stock and 90000 shares of $10 par value common stock outstanding. On December 31, 2014, the directors declare a $30000 cash dividend. The entry to record the declaration of the dividend would include:

a) a credit of 30,000 to cash dividends

b) a credit of 30,000 to dividends payable

c) a note in the financial statements that dividends of $3 per share are in arrears on preferred stock for 2014

d) a debit of 30,000 to common stock