The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2012. The dividend is to be paid on August 15, 2012, to stockholders of record on July 31, 2012. The correct entry to be recorded on July 15, 2012, will include a

A. debit to Dividends Payable
B. debit to Cash Dividends
C. credit to Cash
D. credit to Cash Dividends

Ans: B. debit to Cash Dividends