Mandolnvckers P-The c bam CengageNOWv2| Online te...X nment/ta Calculator Finley

Question

Mandolnvckers P-The c bam CengageNOWv2| Online te...X nment/ta Calculator Finley Company End-of-Period Spreadsheet For the Year Ended December 31 Adjusted Trial Balance Income Statement Balance Sheet Debit Debit Debit Credit Account Title 48,000 18,000 6,000 Cash 18,000 6,000 57,000 Accounts Receivable Equipment 18,000 25,000 6,000 Accumulated Depr Accounts Payable Wages Payable Common Stock Retained Earnings 18,000 25,000 30,000 3,000 3,000 153,000 Fees Earned Wages Expense Rent Expense Depreciaion Expense 27,000 15,000 237,000 27,000 15,000 237,000 105,000 155,000 132,000 82,000 Net Income (Loss) 155,000 155,000 132,000 132,000 The entry to dose Dividends would be Oa. debit Retained Earnings, $3,000; credit Dividends, $3,000 b. debit Common Stock, $3,000; credit Retained Eamings, $3,000 Oc debit Dividends, $3,000; credt Retained Earnings, $3,000 Od. debit Retained Earningn, $3,000; credit Common Steck, $3,000 work saved

Explanation / Answer

The answer would be :-

A.) Debit Retained earnings $3000; credit dividends $3000

To close the dividend account, it must be reversed and hence credited. The counter account would be Retained earnings.

Hope you get the precise answer!

Thank You.

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