Asked by Raeanne Prather on Jul 29, 2024
Verified
Bill, owner of Bill's Golf Center, withdrew $1,600 in cash from the business. Record the transaction by:
A) debiting Bill, Withdrawals, $1,600; crediting Cash, $1,600.
B) debiting Accounts Receivable, $1,600; crediting Cash, $1,600.
C) debiting Expense, $1,600; crediting Cash, $1,600.
D) debiting Bill, Withdrawals, $1,600; crediting Bill, Capital, $1,600.
Cash
Cash in the form of coins or paper money, ready for trading or banking activities.
- Apprehend the nature of asset, liability, capital, revenue, and expense accounts, together with their regular balances.
- Record owner's withdrawals and investments in the business.
Verified Answer
DG
Denaya GlantonAug 04, 2024
Final Answer :
A
Explanation :
When an owner withdraws cash from the business, it is recorded by debiting the owner's withdrawal account (which reflects the reduction in owner's equity due to the withdrawal) and crediting the cash account (which reflects the reduction in the business's cash assets).
Learning Objectives
- Apprehend the nature of asset, liability, capital, revenue, and expense accounts, together with their regular balances.
- Record owner's withdrawals and investments in the business.