Castillo Services Paid K

Multiple Choice

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 Dividends $5,700; credit Cash,$5,700
B) Debit Retained earnings $5,700; credit Dividends $5,700
C) Debit Dividends $5,700; credit Retained earnings $5,700
D) Debit Retained earnings $5,700,credit Salary Expense $5,700
E) Debit Income Summary $5,700; credit Retained earnings $5,700