K.Canopy,the proprietor of Canopy Services,withdrew $5,700 from the business during the current year.The entry to close the withdrawals account at the end of the year is:
A)Debit K Canopy,Withdrawals $5,700;credit Cash,$5,700
B)Debit K.Canopy,Capital $5,700;credit K.Canopy,Withdrawals $5,700
C)Debit K.Canopy,Withdrawals $5,700;credit K.Canopy,Capital $5,700
D)Debit K.Canopy,Capital $5,700,credit Salary Expense $5,700
E)Debit Income Summary $5,700;credit K Canopy,Capital $5,700

Question

Quizplus · Accepted Answer

The correct entry to close the withdrawals account is to debit the capital account and credit the withdrawals account, reducing the owner's equity by the amount withdrawn.

KCanopy,the Proprietor of Canopy Services,withdrew $5,700 from the Business During