375 – Dividends

Net Worth

Synopsis

Account 375

Debits

Credits

  1. Amounts declared by the Board of Directors for distribution to stockholders.

  1. Year-end entry to transfer the balance of this account to Retained Earnings (Account 370).

 

Remarks:

This account should be used only by dealers operating as a corporation.

 

The balance in this account represents current year dividends declared for distribution to stockholders.

 

Dividends declared in prior years should not be charged to this account.

 

When dividends are declared payable at a subsequent date, debit this account and credit for the total amount of dividends declared.

Note: