On January 15, a corporation paid a cash dividend that had been declared prior to the end of its previous fiscal year. The entry to pay the dividends includes a debit to

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When a corporation pays a cash dividend that had been declared prior to the end of its previous fiscal year, the accounting entry to record the payment of the dividends would involve a debit to the "Dividends Payable" account and a credit to the "Cash" account. This entry reflects the reduction in the liability that the company had recorded when the dividend was declared (Dividends Payable) and the decrease in its cash balance due to the payment of the dividends.
The journal entry would look like this:
Debit: Dividends Payable
Credit: Cash
This entry effectively clears the dividends payable liability and shows that cash has been paid out to the shareholders.

On January 15, a Corporation Paid a Cash Dividend That