Use the following end-of-period spreadsheet to answer the questions that follow.

-Use the end-of-period spreadsheet for Finley Company. The entry to close C. Finley, Drawing would be
A) debit C. Finley, Capital, $3,000; credit C. Finley, Drawing, $3,000
B) debit C. Finley, Capital, $12,000; credit C. Finley, Drawing, $12,000
C) debit C. Finley, Drawing, $3,000; credit C. Finley, Capital, $3,000
D) debit C. Finley, Drawing, $12,000; credit C. Finley, Capital, $12,000

Question

Use the following end-of-period spreadsheet to answer the questions that follow.
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-Use the end-of-period spreadsheet for Finley Company. The entry to close C. Finley, Drawing would be
A) debit C. Finley, Capital, $3,000; credit C. Finley, Drawing, $3,000 
B) debit C. Finley, Capital, $12,000; credit C. Finley, Drawing, $12,000 
C) debit C. Finley, Drawing, $3,000; credit C. Finley, Capital, $3,000 
D) debit C. Finley, Drawing, $12,000; credit C. Finley, Capital, $12,000

Quizplus · Accepted Answer

The correct entry to close the drawing account involves debiting the capital account and crediting the drawing account for the same amount, which reflects the withdrawal of funds by the owner from the business.

Use the Following End-Of-Period Spreadsheet to Answer the Questions That