Question

The owner, Marcus James, withdrew $3,000 from the business for personal use. What is the journal entry the company should record?

Answer 1

Answer:

                                                    Debit                               Credit

Drawing Marcus James                3,000            

Cash                                                                                    3,000

Explanation:

In this question cash is being withdrawn from the business so we know that the cash of the business would decrease so we will have to credit cash by $3000. Because the owner is withdrawing the cash a drawing entry will be made and 3000 will be debited.