The owner of BobCats R Us paid his personal Visa Card 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 Payable.

Question

Quizplus · Accepted Answer

The correct entry is to credit Cash because the company is paying out cash, and debit Withdrawals because the payment on the owner's personal Visa Card bill represents a withdrawal of equity from the company for personal use, not a business expense or liability payment.

The Owner of BobCats R Us Paid His Personal Visa