The shareholders' equity section of Starr Corporation at December 31, 2015 included the following: $3 preferred shares, cumulative, 10,000 shares authorized, 9,000 shares issued Common shares, 500,000 shares authorized, 400,000 shares issued Dividends were not declared on the preferred shares in 2015 and are in arrears. $900,000 $2,000,000 On September 15, 2016, the board of directors declared dividends on the preferred shares for 2015 and 2016 to shareholders of record on October 1, 2016, payable on October 15, 2016. On November 1, 2016, the board of directors declared a $0.50 per share dividend on the common shares, payable November 30, 2016, to shareholders of record on November 15, 2016. Using the above information, the correct entry on October 15, 2016 would be: Debit dividend payable $27,000; credit cash $27,000 Debit cash dividend $27,000; credit dividend payable $27,000 Debit cash dividend $54,000; credit dividend payable $54,000 Debit dividend payable $54,000; credit cash $54,000 None of the above