On December 31,2010,Springer,Inc.has 3,000 shares of 6% $100 par value cumulative preferred stock and 45,000 shares of $10 par value common stock outstanding.On December 31,2010,the directors a $12,000 cash dividend. The entry to record the declaration of dividend would include?
a)a credit of $6,000 to retained earnings.
b)a note in the financial statements that dividends of $6 per share are in arreas on preferred stock for 2010.
c)a debit of $12,000 to common stock.
d)a credit of $12,000 to dividends Payable.