Respuesta :
A journal entry to close the dividends account is given below.
Cash Dividend Dr $120,000
Dividend Payable Dr $120,000
Dividend Payable Dr $444,400
The retained earnings statement is presented below.
Beginning balance of retained earning $820,000
Net income $320,000
Cash Dividend paid -$564,400
Ending balance $575,600
Retained Earnings Dr ($120,000 + $444,400) $564,400
To Cash Dividends $564,400
A cash dividend is a payment created by a corporation out of its earnings to investors within the variety of money (check or electronic transfer). This transfers value from the corporate to the shareholders rather than the corporate exploitation the money for operations.
The question is incomplete, find the complete question here
The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $120,000 in the current year. It also declared and paid dividends on common stock in the amount of $2.20 per share. During the current year, Sneer had 1 million common shares authorized; 320,000 shares had been issued; and 118,000 shares were in treasury stock. The opening balance in Retained Earnings was $820,000 and Net Income for the current year was $320,000. Required: Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock. Using the information given above, prepare a statement of retained earnings for the year ended December 31. Prepare a journal entry to close the dividends account.
To learn more about Cash Dividend here
brainly.com/question/13535979
#SPJ4
