Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

A. Cash Dividends

Cash

B. Dividends Payable

Cash

C. Paid-in Capital

Dividends Payable

D. Cash Dividends

Dividends Payable

D. Cash Dividends

Dividends Payable

Explanation:

The journal entry to record the declaration of cash dividends is shown below:

Cash dividend A/c Dr

To Dividend payable A/c

(Being the cash dividend is declared)

The treatment of dividend is that it is deducted and shown in the statement of the retained earnings

Treatment:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid