Asked by Christina Williams on Jul 13, 2024
Verified
Use the end-of-period spreadsheet for Finley Company. The entry to close C. Finley, Drawing would be
A) debit C. Finley, Capital, $3,000; credit C. Finley, Drawing, $3,000
B) debit C. Finley, Capital, $12,000; credit C. Finley, Drawing, $12,000
C) debit C. Finley, Drawing, $3,000; credit C. Finley, Capital, $3,000
D) debit C. Finley, Drawing, $12,000; credit C. Finley, Capital, $12,000
Drawing
The account used to record amounts withdrawn by an owner of a proprietorship.
Closing Entry
Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, clearing out revenues and expenses for the next period.
- Gain insight into the principle and procedure of executing closing entries in accounting practices.
Verified Answer
MA
marcus alexanderJul 17, 2024
Final Answer :
A
Explanation :
The correct entry to close the drawing account involves debiting the capital account and crediting the drawing account for the same amount, which reflects the withdrawal of funds by the owner from the business.
Learning Objectives
- Gain insight into the principle and procedure of executing closing entries in accounting practices.