On April 30, 2012, Loufti Company Declared a Dividend of $40,000

On April 30, 2012, Loufti Company declared a dividend of $40,000. Loufti Company decided that the dividend would be paid on June 15, 2012, to all shareholders of record on May 25, 2012. The journal entry to record the declaration of the dividend on April 30 would include a

A) Credit to Dividends of $40,000
B) Debit to Dividends Payable of $40,000
C) Debit to Cash of $40,000
D) Credit to Dividends Payable of $40,000