Question

Canopy services paid k. canopy, the sole shareholder of canopy services, $5,100 in dividends during the current year. the entry to close the dividends account at the end of the year is:

Answer 1

The answer is "Debit Retained Earnings $5,700; credit Dividends $5,700".


A dividends account gives you a reasonable photo of the piece of your organization's benefits from a set period that you put aside to circulate to investors. The dividends account is a sub-record of proprietor's value by means of held income. Numerous organizations incorporate profits in the held income account. When you record profits in a dividends account, despite everything you should close that record into held income toward the finish of a accounting period or monetary year.