K Canopy, the Stockholder of Canopy Services, Inc

question 230

Multiple Choice

K. Canopy, the stockholder of Canopy Services, Inc., The company paid $5,700 cash in dividends to the owner (sole stockholder) . The entry to close the dividends account at the end of the year is:

• A)Debit Dividends $5,700; credit Cash, $5,700
• B)Debit Retained Earnings $5,700; credit Dividends $5,700
• C)Debit Dividends $5,700; credit Retained Earnings $5,700
• D)Debit Retained Earnings $5,700; credit Salary Expense $5,700
• E)Debit Income Summary $5,700; credit Retained Earnings $5,700

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Definitions:

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