Use the Work Sheet for Finley Company to Answer the Questions

Multiple Choice

Use the work sheet for Finley Company to answer the questions that follow. The entry to close Dividends would be

A) debit Retained Earnings, $3,000; credit Dividends, $3,000
B) debit Retained Earnings, $12,000; credit Dividends, $12,000
C) debit Dividends, $3,000; credit Retained Earnings, $3,000
D) debit Dividends, $12,000; credit Retained Earnings, $12,000