Question

ABC Corp paid out $60,000 in dividends. How will this be recorded in ABC's journal?
Select an answer:
1. a debit to dividends and a credit to cash
2. a credit to dividends and a debit to cash
3. a credit to retained earnings and a credit to cash
4. a credit to revenue and a debit to dividends

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Answer 1

Answer:

I think the answer is debit to dividens and a credit to cash.

Explanation:

And this is because this transfers economic value from the company to the shareholders instead of the company using the money for operations.