Emilia Feridy, the proprietor of EF Services, withdrew a total of $50 for to pay for her daughter's swimming lessons. What is the entry needed to record this transaction?
A) Debit Emilia Feridy, Capital and credit Cash for $50.
B) Debit Emilia Feridy, Withdrawals and credit Cash for $50.
C) Debit Emilia Feridy, Withdrawals and credit Emilia Feridy, Capital for $50.
D) Debit Emilia Feridy, Capital and credit Emilia Feridy, Withdrawals for $50.
E) Debit Cash and credit Emilia Feridy, Withdrawals for $50.

Question

Quizplus · Accepted Answer

The transaction involves the proprietor of the business withdrawing cash for personal use. Therefore, the entry should be a debit to the account for withdrawals (an equity account) and a credit to the cash account. Option A is incorrect as it debits the capital account, which is not affected by this transaction. Option C is incorrect as it credits the capital account, which is not accurate. Option D is incorrect as it debits the capital account, which is not affected by this transaction. Option E is incorrect as it debits the cash account, which is not affected by this transaction.

Emilia Feridy, the Proprietor of EF Services, Withdrew a Total