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, Capital $5,700, credit Salary Expense $5,700
B) Debit K Canopy, Withdrawals $5,700; credit Cash, $5,700
C) Debit Income Summary $5,700; credit K. Canopy, Capital $5,700
D) Debit K. Canopy, Capital $5,700; credit K. Canopy, Withdrawals $5,700
E) Debit K. Canopy, Withdrawals $5,700; credit K. Canopy, Capital $5,700

Question

Quizplus · Accepted Answer

The withdrawals account is closed by debiting the owner's capital account and crediting the withdrawals account.

K Canopy, the Proprietor of Canopy Services, Withdrew $5,700 from the Business