Marvin’s Foods has outstanding 400 shares of 2% preferred stock, $100 par value; and 1,500 shares of common stock, $15 par value. Marvin’s declares dividends of $13,800. Which of the following is the correct entry?

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A1 Dividends Expense Cash 13,800 a. 13,800 3 b. Retained Earnings 13,800 Dividends Payable, Preferred Dividends Payable, Common 800 13,000 Dividends Payable, Preferred Dividends Payable, Common Cash C. 800 13,000 9. 10 11 13,800 d. Retained Earnings 12 13,800 Dividends Payable, Preferred Dividends Payable, Common 6,900 6,900 13 14 15