Asked by
Jorge Sanchez
on Nov 15, 2024
Verified
The journal entry to pay a cash dividend is to:
A) debit Retained Earnings; credit Dividends Payable.
B) debit Dividends Payable; credit Cash.
C) debit Retained Earnings; credit Cash.
D) debit Dividends Payable; credit Retained Earnings.
Retained Earnings
Cumulative net earnings not distributed as dividends to shareholders, reinvested in the business or available for debt repayment.
- Gain insights into the effects of dividends on financial records and their journaling process.
- Familiarize oneself with the steps and implications involved in the declaration and issuance of dividends.
Verified Answer
MF
Learning Objectives
- Gain insights into the effects of dividends on financial records and their journaling process.
- Familiarize oneself with the steps and implications involved in the declaration and issuance of dividends.