Use the following account balances from the adjusted trial balance columns of RB Auto's
Worksheet to answer below question.

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Select the correct closing entry that RB Auto would make to close the owner's withdrawal account at the end of the accounting period.
A)debit R. Holloway, Capital $500 and credit R. Holloway, Drawing for $500.
B)debit R. Holloway, Drawing $500 credit R. Holloway, Capital for $500.
C)debit Income Summary $500 and credit R. Holloway, Drawing for $500.
D)debit R. Holloway, Drawing $500 and credit Income Summary for $500.

Question

Use the following account balances from the adjusted trial balance columns of RB Auto's
Worksheet to answer below question.
 
-
Select the correct closing entry that RB Auto would make to close the owner's withdrawal account at the end of the accounting period.
A)debit R. Holloway, Capital $500 and credit R. Holloway, Drawing for $500. 
B)debit R. Holloway, Drawing $500 credit R. Holloway, Capital for $500. 
C)debit Income Summary $500 and credit R. Holloway, Drawing for $500. 
D)debit R. Holloway, Drawing $500 and credit Income Summary for $500.

Quizplus · Accepted Answer

The owner's withdrawal account is a temporary account that is closed at the end of the accounting period. The correct closing entry is to debit the owner's capital account and credit the owner's withdrawal account for the amount of the withdrawal.

Use the Following Account Balances from the Adjusted Trial Balance