Answer:
D. Cash Dividends
Dividends Payable
Explanation:
The journal entry to record the declaration of cash dividends is shown below:
Cash dividend A/c Dr
To Dividend payable A/c
(Being the cash dividend is declared)
The treatment of dividend is that it is deducted and shown in the statement of the retained earnings
Treatment:
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
