On April 11th, a company pays a dividend of \$300,000. What is the journal entry recorded on this date?

• A. Debit Dividends Payable \$300,000; Credit Dividends \$300,000
• B. Debit Cash \$300,000; Credit Dividends Payable \$300,000
• C. Debit Dividends Payable \$300,000; Credit Cash \$300,000
• D. Debit Dividends \$300,000; Credit Dividends Payable \$300,000

Answer: (C)