if-a-company-declared-dividends-of-10000-what-is-the-correct-closing-entry

Question

If a company declared dividends of $10,000, what is the correct closing entry?

Accepted Answer

Debit Retained Earnings $10,000; Credit Dividends $10,000

Answer

Credit Dividends $10,000; Debit Retained Earnings $10,000

Answer

Credit Retained Earnings $10,000; Debit Dividends $10,000

Answer

Debit Dividends $10,000; Credit Retained Earnings $10,000

If a company declared dividends of \$10,000, what is the correct closing entry?