Jen Rogers withdrew a total of $35,000 from her business during the current year. The entry needed to close the withdrawals account is:
A) Debit Jen Rogers, Withdrawals and credit Cash for $35,000.
B) Debit Jen Rogers, Capital and credit Jen Rogers, Withdrawals for $35,000.
C) Debit Jen Rogers, Withdrawals and credit Jen Rogers, Capital for $35,000.
D) Debit Income Summary and credit Cash for $35,000.
E) Debit Income Summary and credit Jen Rogers, Withdrawals for $35,000.

Question

Quizplus · Accepted Answer

To close the withdrawals account, you debit the capital account and credit the withdrawals account, reducing the owner's equity by the amount withdrawn.

Jen Rogers Withdrew a Total of $35,000 from Her Business