Castillo Services paid K. Castillo, the sole shareholder of Castillo Services, $5,700 in dividends during the current year. The entry to close the dividends account at the end of the year is:
A. Debit Retained earnings $5,700; credit Dividends $5,700
B. Debit Income Summary $5,700; credit Retained earnings $5,700
C. Debit Retained earnings $5,700, credit Salary Expense $5,700
D. Debit Dividends $5,700; credit Cash, $5,700
E. Debit Dividends $5,700; credit Retained earnings $5,700
Answer: A
You might also like to view...
Which of the following accounts on the manufacturing company work sheet is NOT an asset account?
a. work in process inventory b. factory overhead c. prepaid insurance d. finished goods inventory
Internal auditors assist external auditors with financial audits to
a. reduce audit fees b. ensure independence c. represent the interests of management d. None of the above. Internal auditors are not permitted to assist external auditors with financial audits.
If a company must share bad news quickly with the public, which of the following would be an appropriate way to accomplish this?
A) Websites B) Memos C) Telephone D) Letter E) Group meeting
Pomander Inc had the following information related to last year's sales: Cash sales $107,500 Credit sales 250,000 Accounts receivable - beginning 10,000 Accounts receivable - ending 14,000 What amount would be reported as "cash collections from customers" on the statement of cash flows using the direct method?
A) $254,000 B) $381,500 C) $111,500 D) $353,500