The journal entry to record the withdrawal of cash by Sue Snow,the owner,to pay a personal utility bill would include

Question

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When an owner withdraws cash for personal use, it is recorded as a debit to the owner's Drawing account and a credit to Cash. Option A is incorrect because a debit to Sue Snow, Capital implies that the owner is investing more money into the business, which is not the case. Option B is incorrect because the payment of a personal utility bill is not an expense of the business. Option D is incorrect because it records the payment as an expense of the business rather than a personal withdrawal of the owner.

The Journal Entry to Record the Withdrawal of Cash by Sue