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”Paid dividends" how this affects asset, liability, SE how this affects cash, dividend Need URGENT help...

”Paid dividends"

how this affects asset, liability, SE
how this affects cash, dividend

Need URGENT help
thanks so much!
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Answer #1

When dividend is paid, cash balance under assets and retained earnings under Shareholders equity (SE) will reduce.

Assets and SE will reduce when dividend is paid.

When dividend is paid, cash account is credited and dividend account is debited. Dividend account is closed by debiting Retained earnings and crediting dividend account.

Cash reduces and dividend account has a debited and subsequent closed with retained earnings.

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