Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

A) Retained Earnings Cash
B) Cash Dividends Payable Cash
C) Paid-In Capital Cash Dividends Payable
D) Cash Dividends Cash Dividends Payable

Cash Dividends Payable

A liability account on a company’s balance sheet representing the amount of dividends declared by the board of directors but not yet paid out to shareholders.

General Journal Entry

A basic accounting record used to log all business transactions and events in the accounting system.