On November 1, 2010, Livebird Industries Declares a Cash Dividend

On November 1, 2010, Livebird Industries declares a cash dividend of $2 per share. At that time, the company had 25,000 shares of authorized and 20,000 shares of outstanding common stock. The dividend is payable to shareholders of record on November 15, to be paid December 1, 2010. On November 1, the company would

A) make no accounting entry because the dividends have not yet been paid.
B) debit Dividends-Common Stock for $40,000.
C) debit Dividends-Common Stock for $50,000.
D) debit Cash Dividends Payable for $40,000.
E) debit Cash Dividends Payable for $50,000.