The company declared and paid a dividend of $110. Debit dividends now what do you credit????

Question

homework question not sure what to credit

Answer 1

Did you say declared AND PAID? Let's go back a little. When the dividend was 1st declared, your entry:
Dr Dividend 110
Cr Dividend payable 110 (liability a/c)

Later, when you actually PAY the dividend, your entry:
Dr Dividend payable 110
Cr Cash 110

Feel free to ask if you need clarification

Answer 2

Dividends are paid out of profits of the co.
When dividends are declared we debited P/L a/c and credit Dividend Payable A/c.
When Dividends are actually paid we Debit Dividend Payable a/c. and credit Bank a/c.
I hope this is correct.

Answer 3

You would debit either retained earnings or some sort of temporary account that must be closed out at year end.

Credit dividends payable.