A Company Declared a $0 $\begin{array}{|l|c|c|}\hline \text { Retained Earnings } & 4,000 & \\\hline \text { Common Dividends Payable } & & 4,000 \\\hline\end{array}$

A company declared a $0.50 per share cash dividend.The company has 20,000 shares authorized,9,000 shares issued and 8,000 shares of common stock outstanding.The journal entry to record the dividend declaration is:

A)
$\begin{array}{|l|c|c|}\hline \text { Retained Earnings } & 4,000 & \\\hline \text { Common Dividends Payable } & & 4,000 \\\hline\end{array}$
B)
$$\begin{array} { | l | c | c | } \hline \text { Common Dividends Payable } & 4,000 & \\\hline \text { Cash } & & 4,000 \\\hline\end{array}$$
C)
$$\begin{array} { | l | c | c | } \hline \text { Retained Earnings } & 4,500 & \\\hline \text { Common Dividends Payable } & & 4,500 \\\hline\end{array}$$
D)
$$\begin{array} { | l | c | c | } \hline \text { Common Dividends Payable } & 4,500 & \\\hline \text { Cash } & & 4,500 \\\hline\end{array}$$
E)
$\begin{array}{|l|c|c|}\hline \text { Retained Earnings } & 5,000 & \\\hline \text { Common Dividends Payable } & & 5,000 \\\hline\end{array}$