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    ppie1981's Avatar
    ppie1981 Posts: 1, Reputation: 1
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    #1

    Nov 13, 2010, 08:24 AM
    Is declared dividend included in the changes in equity?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    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.
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