Account Titles and Explanation Debit Cash Common Stock Paid-in Capital in Excess of Stated Value-Con Treasury Stock Cash Cash Dividends 612000 12,100 42,000 Credit 68,000 544,000 12,100 Dividends Payable 42,000 Dividends Payable 42,000 Cash 42,000 Cash Dividends Dividends Payable Income Summary 117,000 Retained Earnings 117,000 To close net income) Dividends Payable 114,590 Cash To close dividends) Retained Earnings To record payment of the dividend declared on December 1) 156,590 114,590 156,590