A company paid Jen Rogers, its sole stockholder, a total of $25,000 in dividends during the current year. The entry needed to close the dividends account is:

Multiple Choice

• Debit Dividends and credit Cash for $25,000

• Debit Income Summary and credit Cash for $25,000.

• Debit Retained earnings and credit Dividends for $25,000.

• Debit Dividends and credit Retained earnings for $25,000.

• Debit Income Summary and credit Dividends for $25,000.