The board of directors of Capstone Incorporated declared a $$0\mathrm{.}60$ per share cash dividend on its $$1$ par common stock. On the date of declaration, there were $50,000$ shares authorized, $20,000$ shares issued, and $5,000$ shares held as treasury stock.

What is the entry when the dividends are declared?

Transection Account Title Debit Credit

A$.$ Dividends $9,000$

A$.$ Dividends Payable $9,000$

B$.$ Dividends $9,000$

B$.$ Cash $9,000$

C$.$ Dividends $12,000$

C$.$ Dividends Payable $12,000$

D$.$ Dividends $12,000$

D$.$ Cash $12,000$

Multiple Choice

Option D

Option B

Option C

Option A