easy · Financial Accounting stockholders-equity

A beginner is learning the accounting idea from zero context.

Which entry records declaration of a cash dividend under a simple retained-earnings presentation?

  1. Debit Cash; credit Service Revenue
  2. Debit Dividends Payable; credit Cash
  3. Debit Dividend Expense; credit Common Stock for the amount declared
  4. Debit Retained Earnings; credit Dividends Payable

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