when the owner withdraws cash fromhis business, what would be the entryOno entryO debit owners withdrawal, credit cashO debit cash, credit owners withdrawaldebit owners withdrawal, credit ownenequitywhat is the ent

Drawings ( owners withdrawal ) is the opposite of Owner's capital. Capital is a nature of credit…

when the owner withdraws cash from his business, what would be the entry O no entry O debit owners withdrawal, credit cash debit cash, credit owners withdrawal debit owners withdrawal, credit owne equity

when the owner withdraws cash from his business, what would be the entry O no entry O debit owners withdrawal, credit cash debit cash, credit owners withdrawal debit owners withdrawal, credit owne equity

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts

Section: Chapter Questions

Problem 6DQ: When an owner withdraws cash or goods from the business, why is this considered an increase to the...

See similar textbooks

Related questions

Q: The journal entry to record the payment of accounts payable will require a O credit to cash account…

A: Payment to accounts payable Decreases cash Decreases accounts payable

Q: What account will not be found in the trial balance of a company using cash basis of accounting? *…

A: As per the cash basis of accounting the transaction is recorded at the time of inflows or outflows…

Q: When does the business maintain Petty cash? a. Shortage of cash in business b. Business purchased on…

A: The petty cash book is prepared for the daily expenses of the business.

Q: which of the following transactions will result in the increase and decrease in liability? a.…

A: Liability is increased when the amount is borrowed when the liability is paid it is decreased by…

Q: When an owner deposits cash in an account in the name of the business , it is an increase to

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.…

Q: Which of the following statements is TRUE? * O A business should credit Revenue when the business…

A: When a donation is received it is not shown as a revenue instead as receipts. A business should…

Q: Identify the financial statement (or statements) that each account would appear on. Use I for Income…

A: Current assets: Current assets are all those assets which are expected to be sold or used as a…

Q: In which voucher from the accounting documents the money entering the cash of the business A)…

A: Accounting Voucher: These are used to record all account related transactions. They are of 2 types:…

Q: All cash receipts in the business result in A. a change in total assets B. an increase in total cash…

A: Cash Receipts is the receiving of cash by the entity is any of the following three circumstances:…

Q: As the manager of Margatita Mexican Restaraunt, you must deal with business transactions. Provide an…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Debit is the normal balance of O loans payable O capital O prepaid rent O unearned revenue The…

A: Solution: Debit is the normal balance of "prepaid rent". Hence third option is correct.

Q: A business provides services to a customer on credit.Which of the following is correct: A.Assets…

A: Every transaction has dual effect on the books of accounts. Total assets = Total liabilities +…

Q: Which of the following journal entry is True when the owner of a business invested cash in the…

A: The primary reporting of the transactions in the books is to be made through journal entries.

Q: Which of the following entries records the payment of an account payable? a) Debit Accounts Payable,…

A: Accounts payable is lability and credit balance.

Q: A proprietor makes a cash withdrawal from the proprietorship. How does this affect the accounting…

A: sole proprietorship draws money from the business profit, since he is not paid regularly ,He…

Q: Complete the below table indicating (a) whether each transaction increases (+), decreases (-), or…

A: Cash transaction means the transaction in which the cash payment or cash receipt is involved. It…

Q: Which of the following pairs of accounts are impacted the same with debits and credits?A. Cash and…

A: There are two sides of account in accounting. One is debit side and other is credit side. For all…

Q: A credit is used to increase which of the following accounts? a. Dividends. b. Insurance Expense. c.…

A: Credit: It refers to an entry that is recorded on the right side of the account. It implies an…

Q: is the amount of money deposited into an account. a. Credit transaction b. Account holder c. Opening…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Which of the following accounts is not a permanent account? Select one: a. Utilities Expense b.…

A: A permanent account is the account which is not closed at year end and same is carried to balance…

Q: Help please

A: Cash flow statements is a main part of financial statement. The cash transactions of business are…

Q: secure means of storing money in which individuals or business can deposit or withdraw money as…

A: The financial institute is an institute that deals in all types of financial services and with…

Q: Which of the following statements is TRUE? * A business should credit Revenue when the business…

A: Accounting principles mean some generally accepted rules and guidelines arising out of assumptions…

Q: Cash basis accounting records revenues only when cash is received and expenses only when cash is…

A: Cash basis accounting: It refers to the accounting into which revenues and expenses are only…

Q: It is the amount collected by the business in advance from the customers before the business…

A: A. Bank overdraft is facility by the bank to borrow the amount of money B. Outstanding expenses is a…

Q: If an owner makes a withdrawal of cash from the business bank account, then there has been a…

A: Withdrawals from business decreases asset and owner's equity.

Q: a. Debit Equipment and credit Cash. b. Debit Garcia, Withdrawals and credit Cash. c. Debit Wages…

A: Journal entries can be termed as process of recording various transactions in a chronological order.…

Q: It is the amount collected by the business in advance from the customers before the business…

A: Under the accrual basis of accounting business transactions are recorded in books of accounts as and…

Q: All of the following about expense recognition principle are false, except: O a. Business requests a…

A: As per the accrual basis of accounting, we need to record the transaction when it occurred,…

Q: Which of the following journal entries is correct when a business entity uses cash to pay an account…

A: The journal entry is the initial reporting made to the books of accounts with regard to the…

Q: Stute whether the following are non-current assets, current assets, owner's equty. non-current…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: account that would be decreased when a business makes sale of a Car for cash C

A: By sale of car for cash, car account and cash account will be affected. Car account is credited by…

Q: Entity a send an employee to an official travel and gives him cash to cover his travelling expenses.…

A: A travel advance is an amount paid to the employee who is about to travel for business purposes. A…

Q: Which business transactions would result in the following journal entry Dr. Supplies Cr. Accounts…

A: Journal entries: Journal entries are the way we capture the activity of our business .

Q: Answer the following question: It is an event where money moves into or out of an account. a.…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Which of the following journal entry is True when the business received cash for services provided?…

A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…

Q: All of the following about expense recognition principle are false, except: O a. Business buys a…

A: from the given following options O a. Business buys a building.O b. Business requests a loan from a…

Q: Business makes payment of Bank loan. Which of the following is the correct journal entry? a. Dr Bank…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Indicate how each business transaction affects the basic accounting equation. Paid cash for…

A: ANswer - Every transactions have two effects in Financial Statements - 1. Paid cash for…

Q: Are expenses of any kind a Debit account? Are they, a debit account because Owner's Equity is a…

A: 1. Are expenses of any kind a Debit account?Yes. All kinds of expenses are to be debited. In double…

Q: the company rendered services on account, what is the entry? O debit cash, credit service revenue…

A: Rendering services is called service revenue for the business. For services rendered, amount may be…

Q: corrected balance of

A: (Note: Since you have posted a multi-part question, we will solve the first three parts for you. For…

Q: When an account payable is paid with cash, the owner's equity in the business decreases. Please…

A: Accounting equation is the equation in which total assets are equal to the total of liabilities and…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

100%

when the owner withdraws cash from
his business, what would be the entry
Ono entry
O debit owners withdrawal, credit cash
O debit cash, credit owners withdrawal
debit owners withdrawal, credit ownen
equity
what is the ent

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is the effect on the fundamental accounting equation if supplies are purchased on account? How will the fundamental accounting equation change if supplies are purchased with cash? Explain how this purchase will or will not change the owners equity.
Which of these transactions requires a debit entry to Cash? A. paid balance due to suppliers B. sold merchandise on account C. collected balance due from customers D. purchased supplies for cash
When fees are earned and the customer promises to pay later, which account is debited? (a) Cash (b) Accounts Receivable (c) Accounts Payable (d) Capital
Name a source document that provides information about each of the following types of business transactions: a. Cash payment b. Cash receipt c. Sale of goods or services d. Purchase of goods or services
From the following list, identify which items are considered original sources: A. accounts receivable B. receipt from post office for post office box C. purchase order D. general ledger E. adjusted trial balance F. statement of retained earnings G. electric bill H. packing slip I. company expense account J. statement of cash flows
Name two situations where cash would be remitted to a retailer from a manufacturer after purchase.
Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. A. sold goods to customers on credit B. collected cash from customer accounts C. sold goods to customers for cash D. collected cash in advance for goods to be delivered later
For each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash Disbursements Journal, Purchases Journal, or General Journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, neither) would be used in recording the transaction. A. Sold inventory for cash B. Issued common stock for cash C. Received and paid utility bill D. Bought office equipment on account E. Accrued interest on a loan at the end of the accounting period F. Paid a loan payment G. Bought inventory on account H. Paid employees I. Sold inventory on account J. Paid monthly insurance bill
For each of the transactions, state which special journal (sales journal, cash receipts journal, cash disbursements journal, purchases journal, or general journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, or neither) would be used in recording the transaction. A. Paid utility bill B. Sold inventory on account C. Received but did not pay phone bill D. Bought inventory on account E. Borrowed money from a bank F. Sold old office furniture for cash G. Recorded depreciation H. Accrued payroll at the end of the accounting period I. Sold inventory for cash J. Paid interest on bank loan
What does a debit balance in the cash short and over account represent? What does a credit balance in this account represent?
Assume a company has a $350 credit (not cash) sale. How would the transaction appear if the business uses accrual accounting? A. $350 would show up on the balance sheet as a sale. B. $350 would show up on the income statement as a sale. C. $350 would show up on the statement of cash flows as a cash outflow. D. The transaction would not be reported because the cash was not exchanged.
Which of the following accounts would increase owners equity? a. Cash b. Accounts Payable c. Accounts Receivable d. Income from Tutoring