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

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