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View Full Version : Is declared dividend included in the changes in equity?


ppie1981
Nov 13, 2010, 08:24 AM

Just Looking
Nov 13, 2010, 10:01 AM
Yes. The entry to declare dividends is to debit Dividends Declared and credit Dividends Payable.

Dividends Declared is a contra-equity account and is closed out of Retained Earnings at year end. Some companies will make their initial debit entry to Retained Earnings.