Tablet Trade & Commerce Has 100,000 Shares of Common Stock $\begin{array} { l l l } \text { Retained Earnings } & 50,000 & \\\text { Dividends Payable } && 50,000 & \\\end{array}$

Tablet Trade & Commerce has 100,000 shares of common stock authorized,10,000 shares issued and outstanding.On June 1,20X3,the company declared a $5.00 per share dividend for those of record on July 1,20X3,to be paid on August 1,20X3.Which of the following journal entries would Tablet Trade & Commerce make on June 1,20X3?

A) No journal entry is necessary

B) $\begin{array} { l l l } \text { Retained Earnings } & 50,000 & \\\text { Dividends Payable } && 50,000 & \\\end{array}$

C) $\begin{array}{lccc}\text { Dividends Payable } & 50,000 & \\\text { Cash } & & 50,000 \\\end{array}$

D) $\begin{array}{lccc}\text { Retained Earnings } & 500,000 & \\\text { Dividends Payable } & & 500,000 \\\end{array}$

E) $\begin{array}{lccc}\text { Retained Earring } & 500,000 & \\\text { Cash } & & 500,000\end{array}$