On December 31, 2014, Springer, Inc. has 3,000 shares of 5% $100 par value cumulative preference shares and 45,000 ordinary shares with a $10 par value outstanding. On December 31, 2014, the directors declare a $15,000 cash dividend. The entry to record the declaration of the dividend would include

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The entry to record the declaration of the dividend would include a credit to Dividends Payable, which is a liability account. Therefore, the correct choice is D. Choice A is incorrect because the credit would be to Retained Earnings only after the dividend has been paid. Choice B is incorrect because it is only a note in the financial statements and not an actual entry. Choice C is incorrect because it would decrease the Share Capital-Ordinary account, which is not appropriate for recording dividends.