The journal entry to record a withdrawal by the owner would most commonly include: a

Accounting Dec 16, 2020

The journal entry to record a withdrawal by the owner would most commonly include:

a. a debit to Wage Expense and a credit to Cash.

b. a debit to Capital and a credit to Cash.

c. a debit to Withdrawals and a credit to Cash.

d. a debit to Cash and a credit to Wage Expense.

Expert Solution

The answer is b. a debit to Capital and a credit to Cash.

This is because the Capital account is lowered by the funds withdrawn and the cash account is lowered since the company has less cash since it distributed a portion to the owner.

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