The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 4,800 shares held as treasury stock.

What is the entry for the dividend declaration?

Multiple Choice:

a)Retained earnings 9,129

Cash 9,120

b) Retained earnings 10,080

Cash 10,080

c)Retained earnings 10,080

Cash dividends payable 10,080

d) Retained earnings 9,120

Cash dividends payable 9,120