Ask Question
22 December, 11:12

Castillo Services paid K. Castillo, the sole shareholder of Castillo Services, $6,200 in dividends during the current year. The entry to close the dividends account at the end of the year is: Multiple Choice a. Debit Dividends $6,200, credit Cash, $6,200 b. Debit Retained earmings $6,200, credit Salary Expense $6,200 c. Debit Retained earnings $6,200; credit Dividends $6,200 d. Debit Dividends $6,200; credit Retained earnings $6,200 e. Debit Income Summary $6,200; credit Retained earnings $6.200

+1
Answers (1)
  1. 22 December, 11:30
    0
    c. Debit Retained earnings $6,200; credit Dividends $6,200

    Explanation:

    The journal entry to record the closing of the dividend account is as follows

    Retained earnings Dr $6,200

    To Dividend $6,200

    (Being dividend account is closed)

    While recording this given entry we debited the retained earning account and credited the dividend account so that the proper posting could be done
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Castillo Services paid K. Castillo, the sole shareholder of Castillo Services, $6,200 in dividends during the current year. The entry to ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers