Question

Jen Rogers withdrew a total of $35,000 from her business during the current year. The entry needed to close the withdrawals account is:

Answer 1

Answer and Explanation:

The journal entry is shown below:

Jen Rogers, Capital $35,000

         To Jen Rogers, Withdrawals $35,000

(Being withdrawals entry is recorded)

Here the Jen Rogers, Capital is debited as it decreased the stockholder equity while the Jen Rogers, Withdrawals is credited as it also decreased the drawings account. Also, the capital contains normal credit balance while drawings contains normal debit balance