If Taylor Willow,the owner of Willow Hardware proprietorship,uses cash of the business to purchase a family automobile,the business should record this use of cash with an entry to:
A)Debit Salary Expense and credit Cash.
B)Debit Cash and credit Salary Expense.
C)Debit Cash and credit T.Willow,Withdrawals.
D)Debit T.Willow,Withdrawals and credit Cash.
E)Debit Automobiles and credit Cash.

Question

Quizplus · Accepted Answer

The transaction is a withdrawal of business funds for personal use, so it should be recorded as a debit to T.Willow, Withdrawals and a credit to Cash.

If Taylor Willow,the Owner of Willow Hardware Proprietorship,uses Cash of the Business