Caesar's Coffee Co. declared its annual cash dividend on its 3% preferred stock (total par value $90,000) and a $0.25 per share cash dividend on its common
stock (50,000 shares outstanding). The journal entry for the declaration date is:
A. debit Retained Earnings $6,450, credit Dividends Payable - Preferred $2,700, credit Dividends Payable - Common $3,750
B. no entry required on the declaration date.
C. debit Retained Earnings $12,500, credit Dividends Payable $12,500
D. debit Retained Earnings $15,200, credit Dividends Payable - Preferred $2,700, credit Dividends Payable - Common $12,500