Question 8 of 20 View Policies Show Attempt History < > Current Attempt in Progress * Your answer is incorrect. 0/1 On December 31, 2020, Sheridan, Inc. has 4000 shares of 6% $100 par value cumulative preferred stock and 60700 shares of $10 par value common stock outstanding. On December 31, 2020, the directors declare a $21300 cash dividend. The entry to record the declaration of the dividend would include: a credit of $21300 to Cash Dividends. a debit of $21300 to Common Stock. a note in the financial statements that dividends of $4 per share are in arrears on preferred stock for 2020. O a credit of $21300 to Dividends Payable.