The board of directors of Paddington Ltd declared a cash dividend of $5.50 per share on 11,000 ordinary shares on 20 November 2020. The dividend is to be paid on 20 December 2020, to shareholders of record on 30 November 2020. The effects of the journal entry to record the declaration of the dividend on 20 November 2020 are to:

A. Decrease equity and increase liabilities.

B. Decrease equity and decrease assets.

C. Increase equity and decrease assets.

D. Increase equity and increase liabilities.