J. Smith withdrew $100 from Jay's Limo Services for personal use. Which of the following general journal entries will Jay's Limo Services make to record this transaction?
A) $$\begin{array} { | l | r | r | }
\hline \text { J. Smith, Capital } & 100 & \
\hline \text { J. Smith, Withdrawals } & & 100 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | }
\hline \text { J. Smith, Withdrawals } & 100 & \
\hline \text { J. Smith, Capital } & & 100 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 100 & \
\hline \text { J. Smith. Withdrawals } & & 100 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 100 & \
\hline \text { J. Smith, Capital } & & 100 \
\hline
\end{array}$$
E) $$\begin{array} { | l | r | r | }
\hline \text { J. Smith. Withdrawals } & 100 & \
\hline \text { Cash } & & 100 \
\hline
\end{array}$$

Question

J. Smith withdrew $100 from Jay's Limo Services for personal use. Which of the following general journal entries will Jay's Limo Services make to record this transaction?
A) $$\begin{array} { | l | r | r | } 
\hline \text { J. Smith, Capital } & 100 & \
\hline \text { J. Smith, Withdrawals } & & 100 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | } 
\hline \text { J. Smith, Withdrawals } & 100 & \
\hline \text { J. Smith, Capital } & & 100 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 100 & \
\hline \text { J. Smith. Withdrawals } & & 100 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 100 & \
\hline \text { J. Smith, Capital } & & 100 \
\hline
\end{array}$$
E) $$\begin{array} { | l | r | r | } 
\hline \text { J. Smith. Withdrawals } & 100 & \
\hline \text { Cash } & & 100 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The correct entry for a withdrawal for personal use is to debit the Withdrawals account and credit the Cash account, reflecting the decrease in cash and the increase in withdrawals.