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AysviL [449]
3 years ago
10

Concord Company pays cash dividends of $670. The entry for this transaction will include a debit of $670 to

Business
1 answer:
kow [346]3 years ago
4 0

Answer:

c. Dividends

Explanation:

Whenever, dividends are recorded as a liability then that amount is charged against retained earnings, but the final entry for payment of dividend =

Dividend A/c Dr.         $670

To Cash A/c.                           $670

Also at the time of recording as an expense, entry will be

Retained Earnings A/c Dr.       $670

                  To Dividend A/c                $670

Since retained earning balance will be reduced and finally cash balance will also be reduced.

Therefore, entry for payment will include debit to

c. Dividends

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