On March 14th, a company declares a dividend of \$500,000. What is the journal entry recorded on this date?

• A. Debit Dividends Payable \$500,000; Credit Dividends \$500,000
• B. Debit Cash \$500,000; Credit Dividends Payable \$500,000
• C. Debit Dividends \$500,000; Credit Dividends Payable \$500,000
• D. Debit Dividends \$500,000; Credit Cash \$500,000

Answer: (C)