The Board of Directors of Capstone Inc $\begin{array}{|l|l|l|}\hline \text { Retained earnings } & 9,000 & \\\hline \text { Dividends payable } & & 9,000 \\\hline\end{array}$

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) $\begin{array}{|l|l|l|}\hline \text { Retained earnings } & 9,000 & \\\hline \text { Dividends payable } & & 9,000 \\\hline\end{array}$
B) $\begin{array}{|l|l|l|}\hline \text { Retained earnings } & 9,000 & \\\hline \text { Cash } & & 9,000 \\\hline\end{array}$
C) $\begin{array}{|l|l|l|}\hline \text { Retained earnings } & 10,000 & \\\hline \text { Dividends payable } & & 10,000 \\\hline\end{array}$
D) $\begin{array}{|l|l|l|}\hline \text { Retained earnings } & 10,000 & \\\hline \text { Cash } & & 10,000 \\\hline\end{array}$