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The company failed to record a dividend of $250,000 that was declared in 2014, but not been paid to shareholders as of December 31, 2014.
The company failed to record a dividend of $250,000 that was declared in 2014, but not been paid to shareholders as of December 31, 2014.
How would you Correct this journal entry:
a.
Debit: Retained earnings (-SE) $250,000
Credit: Dividends expense (+E, -SE) $250,000
b.
Debit: Retained earnings (-SE) $250,000
Credit: Dividends payable (+L) $250,000
c.
Debit: Retained Earnings (-SE) $250,000
Credit: Cash (-A) $250,000
d. No correcting entry is required
** Please explain the answer
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