K Canopy, the Stockholder of Canopy Services, Inc

Multiple Choice

K. Canopy, the stockholder of Canopy Services, Inc., The company paid $5,700 cash in dividends to the owner (sole stockholder) . 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