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?