Sebastien Company earned net income of $44,000 during 2014. The company paid dividends totaling $20,000 during the period. Prepare the entries to close Income Summary and the Dividends account.(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit Credit

(To close net income to retained earnings.)

(To close dividends to retained earnings.)