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-   -   Is declared dividend included in the changes in equity? (https://www.askmehelpdesk.com/showthread.php?t=525504)

  • Nov 13, 2010, 08:24 AM
    ppie1981
    Is declared dividend included in the changes in equity?
  • Nov 13, 2010, 10:01 AM
    Just Looking

    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.

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