Canopy services paid k. Canopy, the sole shareholder of canopy services, $5,700 in dividends during the current year. The entry to close the dividends account at the end of the year is:

The entry to close the dividends account at the end of the year:

It is given that Canopy services paid k. Canopy, the sole shareholder of canopy services, $5,700 in dividends during the current year. The entry to close the dividends account at the end of the year shall be as follows:

Dec. 31, Year;

Retained earnings Debit $5,700

Dividends Credit $5,700

(Being dividends closed to retained earnings)