On January 1, 2019, Kittson Company had a retained earnings balance of $220,600. It is subject to a 25% corporate income tax rate. During 2019, Kittson earned net income of $65,000. On December 31, 2019, cash dividends of $4 per share on 4,000 shares of common stock were declared and will be paid on January 1, 2020. Which of the following journal entries would record this transaction on December 31, 2019?
a. Debit: Dividends Payable $16,000
Credit: Retained Earnings $16,000
b. No journal entry; just a memorandum
c. Debit: Retained Earnings $16,000
Credit: Dividends Payable $16,000
d. Debit: Retained Earnings $16,000
Credit: Cash $16,000