TB MC Qu. 10-111 (Algo) The board of directors of Capstone... The board of directors of Capstone Incorporated declared a $0.40 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 3,000 shares held as treasury stock. What is the entry when the dividends are declared? Transection Account Title Debit Credit A. Dividends 7,200 Dividends Payable 7,200 B. Dividends 7,200 Cash 7,200 C. Dividends 18,400 Dividends Payable 18,400 D. Dividends 8,400 Cash 8,400