On January 15,2014,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:

Question

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When a corporation pays a cash dividend, it should debit its Dividends Payable account and credit its Cash account. This effectively reduces the amount of the corporation's retained earnings and distributes that amount to shareholders as dividends. Option B identifies this entry correctly.

On January 15,2014,a Corporation Paid a Cash Dividend That Had