What about this journal entry: DR. RE and CR. Note Receivable instead of CR. Dividen payable. Is it also correct too?

Theoretically I can find some excuses for combining just about anything in an entry, in real life, simply cause in real life some pretty goofy things can happen.

However, only revenues, expenses and dividends affect retained earnings, and revenues and expenses should never be going directly into it (which screws up your entry), but rather would be closed to it at the end of the year.

Be thinking what the parts of an entry do. A credit to a note receivable is reducing how much someone else owes you on a note. The reason you might reduce it could be a lot of things. (Usually cause they paid it, but there could be other, if unusual, reasons.) Since only dividends should ever be going directly through retained earnings (depending on your opinion cause I disagree with that anyway), there isn't any legit reason for a reduction in a note receivable to be affecting retained earnings.

Unless you're correcting an error. You can combine anything to correct an error, cause after all, it was an error to begin with.

How did you even come up with that?

I tried to pm you but its not working

If you have a question ask it and the members here will help you if they can.

I believe that morgaine has not been on this site in a long time.

it would be useful to do away with the shorthand and use full account titles. You can transfer amounts between accounts for various reasons; corrections, balance day adjustments and journals can be used as the initial record of transactions.

From the very small amount of information above; a credit to notes recievable would indicate a reduction in the value of the asset I don't understand the didvdend payable are you trying to record the payment of interest on the notes, it so that is an expense, interest paid or as a liability interest payable