Use the following account balances from the adjusted trial balance of Gees Catering Select the correct closing entry that Gees Catering would make to close the owner's withdrawal account at the end of the accounting period.

Question

Use the following account balances from the adjusted trial balance of Gees Catering  Select the correct closing entry that Gees Catering would make to close the owner's withdrawal account at the end of the accounting period.

Quizplus · Accepted Answer

The owner's withdrawal account is a temporary equity account that needs to be closed at the end of the accounting period. To do this, we need to debit the owner's withdrawal account and credit the owner's capital account. The correct closing entry for Gees Catering's owner's withdrawal account would be to debit Owner's Withdrawals for $9,400 and credit Owner's Capital for $9,400, which is option B.

Use the Following Account Balances from the Adjusted Trial Balance