Fetzer Company declared a $0.45 per share cash dividend. The company has 440,000 shares authorized, 418,000 shares issued, and 17,600 shares in treasury stock. The journal entry to record the payment of the dividend is:
A. Debit Retained Earnings $180,180; credit Common Dividends Payable $180,180.
B. Debit Retained Earnings $188,100; credit Common Dividends Payable $188,100.
C. Debit Retained Earnings $198,000; credit Common Dividends Payable $198,000.
D. Debit Common Dividends Payable $188,100; credit Cash $188,100.
E. Debit Common Dividends Payable $180,180; credit Cash $180,180.
Answer: E
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