Question: When a dividend is declared and paid by a corporation, a debit is made to retained earnings. Explain why.

When a dividend is declared and paid by a corporation, a debit is made to retained earnings. Explain why.

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A dividend is a distribution of earnings to the shareholders of a corporation Earnings are accumulated in a corporations retained earnings account so when earnings are distributed the retained earnings account is decreased Since a dividend decreases the amount a shareholder ... View full answer

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