Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?

Question

Quizplus · Accepted Answer

When the owner of a business withdraws cash for personal use, it is recorded as a debit to a separate equity account called "drawing" or "withdrawals," and a credit to the cash account. Therefore, option D is the correct choice, as it records a debit to Ty Knott, Drawing (which is an equity account that represents the owner's personal withdrawals) and a credit to Cash. Options A and B are incorrect since there is no expense involved in this transaction, and option C is incorrect because it records the wrong accounts.

Which of the Following Entries Records the Withdrawal of Cash