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Anthony and Erin start a partnership with capital contributions of $64,300 and $94,800, respectively. Over 1 withdraws $2,300 from the business in order to meet his personal expenses. Which of the following is the Anthony's withdrawals account at the end of the year? 2,300 Anthony, Withdrawals Anthony, Capital Cash Anthony, Withdrawals O Anthony, Capital Anthony, Withdrawals 2,300 2,300 2,300 2,300 2,300

Anthony and Erin start a partnership with capital contributions of $64,300 and $94,800, respectively. Over 1 withdraws $2,300 from the business in order to meet his personal expenses. Which of the following is the Anthony's withdrawals account at the end of the year? 2,300 Anthony, Withdrawals Anthony, Capital Cash Anthony, Withdrawals O Anthony, Capital Anthony, Withdrawals 2,300 2,300 2,300 2,300 2,300

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Anthony and Erin start a partnership with capital contributions of $64,300 and $94,800, respectively. Over the course of the year, Anthony withdraws $2,300 from the business in order to meet his personal expenses. Which of the following is the correct journal entry to close Anthony's withdrawals account at the end of the year? 1. - Debit: Anthony, Withdrawals $2,300 - Credit: Anthony, Capital $2,300 2. - Debit: Cash $2,300 - Credit: Anthony, Withdrawals $2,300 3. - Debit: Anthony, Capital $2,300 - Credit: Anthony, Withdrawals $2,300 4. - Debit: Anthony, Withdrawals $2,300 - Credit: Cash $2,300 Explanation: The problem describes a transaction where Anthony withdraws funds for personal use. At the end of the year, this withdrawal account needs to be closed by transferring the balance to his capital account. The correct journal entry achieves this.
Transcribed Image Text:Anthony and Erin start a partnership with capital contributions of $64,300 and $94,800, respectively. Over the course of the year, Anthony withdraws $2,300 from the business in order to meet his personal expenses. Which of the following is the correct journal entry to close Anthony's withdrawals account at the end of the year? 1. - Debit: Anthony, Withdrawals $2,300 - Credit: Anthony, Capital $2,300 2. - Debit: Cash $2,300 - Credit: Anthony, Withdrawals $2,300 3. - Debit: Anthony, Capital $2,300 - Credit: Anthony, Withdrawals $2,300 4. - Debit: Anthony, Withdrawals $2,300 - Credit: Cash $2,300 Explanation: The problem describes a transaction where Anthony withdraws funds for personal use. At the end of the year, this withdrawal account needs to be closed by transferring the balance to his capital account. The correct journal entry achieves this.
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