Emilia Feridy, the proprietor of EF Services, withdrew a total of $50 to pay for herdaughter'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, Capital and credit Emilia Feridy, Withdrawals for $50.
D)Debit Cash and credit Emilia Feridy, Withdrawals for $50.
E)Debit Emilia Feridy, Withdrawals and credit Emilia Feridy, Capital for $50.

Question

Quizplus · Accepted Answer

Emilia Feridy, Withdrawals is debited because the owner is taking money out of the business for personal use. Cash is credited because the business is receiving cash.

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