Question
For the year ended December 31st, a company revenues of $323,000 and expenses of $199,000. The company paid $52,400 in dividends during the year. The
For the year ended December 31st, a company revenues of $323,000 and expenses of $199,000. The company paid $52,400 in dividends during the year. The balance retained earnings account before closing is $87,000. Which of the following entries would be used to close the dividends account?
A. Debit retained earning $87,000. Credit income summary $87,000
B. Debit dividends $52,400. Credit retained earnings $52,400
C. Debit retained earnings $52,400; credit retained earnings $52,400
D. Debit income summary $87,000; credit dividends summary $87,000
E. Debit income summary $52,400; credit retained earnings $52,400
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