Ask Question
15 March, 12:17

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

+2
Answers (1)
  1. 15 March, 13:34
    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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers