On September 30, ASDA Corporation declared and paid $ 2,000 cash dividends to the shareholders. The journal entry to record this transaction will be:

Multiple Choice

• No entry.

• Debit Dividends, $2,000; credit Cash, $2,000

• Debit Cash, $2,000; credit Dividends, $2,000

• Debit Dividends, $2,000; credit Share Capital, $2,000