J.Flow,the proprietor of Flow Services,withdrew $8,700 from his business during 2015.These withdrawals will result in which of the following closing entries at the end of 2015?

Question

Quizplus · Accepted Answer

The withdrawal of $8,700 by the proprietor is recorded as a debit to the owner's drawing account and a credit to the cash account. Therefore, the closing entry will be to debit the owner's drawing account for $8,700 and credit the owner's equity account for the same amount. The only option that shows this entry is B.

JFlow,the Proprietor of Flow Services,withdrew $8,700 from His Business During