Journalize the required closing entries for the year.

8. Greentea Company earned net income of $800,000 during the year ended December 31, 2010. On December 15, Greentea declared the annual cash dividend on its 2% preferred stock (par value, $110,000) and a $1.00 per share cash dividend on its common stock (65,000 shares). Greentea then paid the dividends on January 4, 2011.

R1. Journalize for Greentea:

a. Declaring the cash dividends on December 15, 2010.

b. Paying the cash dividends on January 4, 2011.