The entry to close dividends would be

Account Title Finley Company End-of-Period Spreadsheet For the Year Ended December 31 Adjusted Trial Balance Income Statement Debit Credit Debit Credit 16,000 6,000 2,000 82,456 Cash Balance Sheet Debit Credit 16,000 6,000 2,000 82,456 6,000 6,000 10,000 10,000 2,000 5,000 2,000 Accounts Receivable Supplies Equipment Accumulated Depr Accounts Payable Wages Payable Common Stock Retained Earnings Dividends Fees Earned Wages Expense Rent Expense Depreciation Expense Totals Net Income (LOSS) 62,000 5,000 62,000 3,500 3,500 50,134 50,134 14,132 14,132 6,169 6,169 4,877 4,877 135,134 135,134 25,178 50,134 109,956 85,000 24,956 24,956 50,134 50,134 109,956 109,956 The entry to close Dividends would be Oa. debit Retained Earnings, $3,500; credit Common Stock, $3,500 Ob. debit Retained Earnings, $3,500, credit Dividends, $3,500 Oc. debit Dividends, $3,500; credit Retained Earnings, $3,500 Od. debit Common Stock, $3,500; credit Retained Earnings, $3,500