For the year ended December 31, a company has revenues of $317,000 and expenses of $196,000. The company paid $50,000 in dividends during the year. The balance in the Retained earnings account before closing is $81,000. Which of the following entries would be used to close the dividends account?
a. Debit Retained earnings $53,200; credit Dividends $53,200.
b. Debit Dividends $53,200, credit Retained earnings $53,200.
c. Debit Income Summary $53,200; credit Retained earnings $53,200.
d. Debit Retained earnings $89,000, credit Income Summary $89,000
e. Debit Income Summary $89,000, credit Dividends $89,000
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Home » Business » For the year ended December 31, a company has revenues of $317,000 and expenses of $196,000. The company paid $50,000 in dividends during the year. The balance in the Retained earnings account before closing is $81,000.