The entry to record the declaration of a cash dividend consists of a debit to

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When a company declares a cash dividend, it incurs a liability to pay its shareholders. This liability is recorded as a credit to the Dividends Payable account and a debit to the Retained Earnings account. Therefore, the entry to record the declaration of a cash dividend would be a debit to Retained Earnings and a credit to Dividends Payable. Option A is incorrect because Dividend Expense is not a valid account for recording the declaration of a cash dividend. Option B is incorrect because Common Stock Dividend Distributable is not a valid account, and the entry does not involve any transaction with Common Stock. Option C is incorrect because Dividends Payable is not debited during the declaration of a dividend, but rather credited.

The Entry to Record the Declaration of a Cash Dividend