The amount for withdrawals, to be used on the Statement of Owner's Equity, would be obtained from:
A) the worksheet in the balance sheet debit column.
B) the worksheet in the income statement credit column.
C) the worksheet in the income statement debit column.
D) the worksheet in the balance sheet credit column.

Question

Quizplus · Accepted Answer

Withdrawals by the owner are considered a reduction of equity and are therefore recorded in the balance sheet debit column on the worksheet. They are not income, expenses, or part of the company's liabilities, hence they do not appear in the income statement columns or the balance sheet credit column.

The Amount for Withdrawals, to Be Used on the Statement