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Castillo Services paid K. Castillo, the sole shareholder of Castillo Services, $5,200 in dividends during the current year. The entry to close the dividends account at the end of the year is:

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The entry to close the dividends account at the end of the year is: Debit cash $5,200 and Credit dividends $5,200

What is a dividend?

Dividend is a form of payment made by the company to its existing shareholders, usually as a distribution of profits. It is a portion of company's earnings during the period being returned to their investors.

Dividends are means of both profit distribution and incentives for the investor who keeps on investing in the company.

The entries for dividend accounts are :

Debit cash $5,200

      Credit dividends $5,200

Hence, the entry to close the dividends account at the end of the year is: Debit cash $5,200 and Credit dividends $5,200

Learn more about dividend here : https://brainly.com/question/25845157

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