Closing entry 4

Closing entry 4 - to record dividend payments to investors...

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Closing entry 4 : Mr. Green's drawing account has a $50 debit balance. To close the account, credit  it for $50 and debit the owner's capital account for the same amount.  In a partnership, separate entries are made to close each partner's drawing account to his or her  own capital account. If a corporation has more than one class of stock and uses dividend accounts 
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Unformatted text preview: to record dividend payments to investors, it usually uses a separate dividend account for each class. If this is the case, the corporation's accounting department makes a compound entry to close each dividend account to the retained earnings account....
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