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31 July, 03:51

Concord Company pays cash dividends of $670. The entry for this transaction will include a debit of $670 to

a. Owner's Salaries Expense

b. Salaries and Wages Expense

c. Dividends

d. Retained Earnings

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Answers (1)
  1. 31 July, 06:19
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    c. Dividends

    Explanation:

    Whenever, dividends are recorded as a liability then that amount is charged against retained earnings, but the final entry for payment of dividend =

    Dividend A/c Dr. $670

    To Cash A/c. $670

    Also at the time of recording as an expense, entry will be

    Retained Earnings A/c Dr. $670

    To Dividend A/c $670

    Since retained earning balance will be reduced and finally cash balance will also be reduced.

    Therefore, entry for payment will include debit to

    c. Dividends
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