Unformatted text preview: and “Dividends, Preferred Stock” rather than retained earnings to record dividends declared. If these accounts are used, a closing entry is made at the end of the period to decrease (debit) retained earnings and decrease (credit) “Dividends, Common Stock” and “Dividends, Preferred Stock” to zero out the balances in the dividend accounts and update the retained earnings balance....
View Full Document
This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.
- Spring '09