Kader Co.paid a total of $35,000 in dividends during the current year.The entry needed to close the dividends account is:
A)Debit Income Summary and credit Cash for $35,000
B)Debit Dividends and credit Cash for $35,000
C)Debit Income Summary and credit Dividends for $35,000
D)Debit Retained Earnings and credit Dividends for $35,000
E)Debit Dividends and credit Retained earnings for $35,000

Question

Quizplus · Accepted Answer

To close the dividends account, you debit Retained Earnings and credit Dividends, reducing retained earnings by the amount of dividends paid.

Kader CoPaid a Total of $35,000 in Dividends During the Current