If Girard Don, the owner of Girard's Software proprietorship, uses cash of the business to purchase a personal computer, the business should record this use of cash with an entry to
A) debit Salary Expense and credit cash.
B) debit Girard Don, Salary and credit cash.
C) debit cash and credit Girard Don, withdrawals
D) debit Girard Don, capital and credit cash
E) debit Girard Don, withdrawals and credit cash

Question

Quizplus · Accepted Answer

The owner's use of business cash for personal purposes is recorded as a withdrawal, which decreases the owner's capital. Therefore, the correct entry is to debit Girard Don, withdrawals and credit cash. This option is the only one that reflects a decrease in the owner's capital.

If Girard Don, the Owner of Girard's Software Proprietorship, Uses