The owner of BobCats R Us paid his personal MasterCard bill using a company check.The correct entry to record the transaction is:
A)credit Cash;debit Capital.
B)credit Cash;debit Supplies Expense.
C)credit Cash;debit Withdrawals.
D)credit Cash;debit Accounts Receivable.

Question

Quizplus · Accepted Answer

The transaction involves the use of company funds for personal expenses of the owner. This is considered a withdrawal or a distribution of the owner's equity. Therefore, the correct entry is to credit Cash (as an outflow) and debit Withdrawals (to reduce owner's equity). The other options are not relevant to the transaction.

The Owner of BobCats R Us Paid His Personal MasterCard