Edgar needs to close out $670 in the dividends account at the end of the year. What closing entry will he use?
A.
Income summary (debit) 670; Dividends (credit) 670
B.
Retained earnings (debit) 670; Dividends (credit) 750
C.
Dividends (debit) 670; Income summary (credit) 750
D.
Revenue (debit) 670; Dividends (credit) 670
E.
Cash (debit) 670; Dividends (credit) 670
C. Dividends (debit) 670; Income summary (credit) 670
The correct closing entry Edgar will use is:
C. Dividends (debit) 670; Income summary (credit) 750