Indicate which effect(s) each situation will have:

-________ Owner withdrew $2,000 from the company for personal use
A)New check written
B) Recorded in the general journal
C) Recorded in auxiliary petty cash record
D) Petty cash voucher prepared

Question

Indicate which effect(s) each situation will have:

-________ Owner withdrew $2,000 from the company for personal use
A)New check written
B) Recorded in the general journal
C) Recorded in auxiliary petty cash record
D) Petty cash voucher prepared

Quizplus · Accepted Answer

The withdrawal of $2,000 by the owner for personal use would be recorded in the general journal as it affects the financial position of the company, specifically reducing the company's cash balance and owner's equity.

Indicate Which Effect(s) Each Situation Will Have