tommi walker corp's board of directors declared a dividend for all its shareholders there are 8,000 of dividends in arrears for its cumulative preferred shares. there are 1,000 shares of cumulative preferred shares outstanding. dividends for them are 4.00 per share. furthermore there are 2,000 shares of non-cumulative preferred shares outstanding which pay 6.00 dividend per share. for common shareholders, 9/25 per share dividend has also been declared. there are 10,000 shares of common stock outstanding. to record the dividend declaration you would

A. debit retained earnings 112,500

credit cumulative preferred stock dividend payable 8,000

credit non-cumulative preferrred stock dividend payable 12,000

credit common stock dividend payable 92,500

B. debit retained earnings 8,000

credit cumulative preferred stock dividend payable 12000

credit non-cumulative preferrred stock dividend payable 92500

credit common stock dividend payable 112,500