The Board of Directors of Capstone Inc $\quad$ $\quad$ 9,000
Dividends Payable

The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock. What is the entry for the dividend declaration?

A) Dividends $\quad$$\quad$ 9,000
Dividends Payable $\quad$ 9,000
B) $\begin{array}{ll}\text { Dividends } & 9,000\\\text { Cash }& 9,000\end{array}$
C) Dividends $\quad$$\quad$ 10,000
Dividends Payable $\quad$$\quad$ 10,000
D) Dividends $\quad$$\quad$ 10,000
Cash $\quad$$\quad$ 10,000