During 2010, Elaine Corp

Multiple Choice

During 2010, Elaine Corp. (a calendar-year company) declared $46,000 of dividends. The dividends have not been paid by December 31, 2010. At year-end, Elaine Corp. will

A) debit Dividends and credit Income Summary to close the Dividends account.
B) debit Income Summary and credit Dividends to close the Dividends account.
C) debit Dividends and credit Cash to close the Dividends account.
D) debit Retained Earnings and credit Dividends to close the Dividends account.
E) not close the Dividends account until the dividends have been paid.