Question $10$

The board of directors of ABC Company declared a $$0\mathrm{.}70$ per share cash dividend on its $$2$ par common stock. On the date of declaration, there were $46,000$ shares authorized, $21,000$ shares issued, and $7,000$ shares held as treasury stock. What is the entry when the dividends are declared?

Debit Dividends for $9,800$ ; Credit Dividends Payable for $9,800$

Debit Dividends for $9,800$ ; Credit Cash for $9,800$

Debit Dividends for $32,200$ ; Credit Dividends Payable for $32,200$

Debit Dividends for $14,700$ ; Credit Cash for $14,700$