Acorporation declares a dividend of $0.50 per share on 10,000 shares of common stock. which of the following would be included in the entry to record the declaration? a. paid−in capital in excess of par—common would be credited for $5,000 b. retained earnings would be credited for $5,000 c. retained earnings would be debited for $5,000 d. dividends payable—common would be debited for$5,00

C. Retained Earnings would be debited for $5,000

Explanation:

When the dividend is declared by a company, it becomes a liability for that company. Since, the amount has to be paid from the retained earnings balance of the company, it becomes a debit account. The journal entry should be as follows:

Retained Earnings Debit

Dividend payable Credit

The amount = 10,000 shares x $0.50 per share

Amount to be paid = $5,000

Therefore, option C is correct.