Rachel Corporation has 15,000 shares of common stock and 0 shares of preferred stock outstanding. On January 1, 20X1, it declared dividends of $14,000 to be paid to the shareholders on record as of February 1, 20X1. The dividends were paid on January 1, 20X2.

Which of the following is part of the journal to be made on December 31, 20X1

Group of answer choices

A DEBIT to Retained Earnings for $14,000

A CREDIT to Retained Earnings for $14,000

A DEBIT to Dividends Payable for $14,000

No journal entry is needed on this day