G. Venda, owner of Venda Services, withdrew $25,000 from the business during the current year. The entry to close the withdrawals account at the end of the year is:

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 4, Problem 1MCQ

G. Venda, owner of Venda Services, withdrew $25,000 from the business during the current year. The entry to close the withdrawals account at the end of the year is:

Chapter 4, Problem 1MCQ, G. Venda, owner of Venda Services, withdrew 25,000 from the business during the current year. The

Expert Solution & Answer

To determine

The entry to close the withdrawals account at the end of the year.

Answer to Problem 1MCQ

Option (e) is the correct answer.

Explanation of Solution

Person G is the owner of Company V, who has withdrawn $25,000 from the business during the present year. As it is given that the amount is withdrawn, it must be credited and the capital amount should be debited. Hence, the following entry shows that correct answer.

Principles of Financial Accounting., Chapter 4, Problem 1MCQ

Therefore, Option e is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

On May 31, 2026, Oriole Company paid $3,290,000 to acquire all of the common stock of Pharoah Corporation, which became a division of Oriole. Pharoah reported the following balance sheet at the time of the acquisition: Current assets $846,000 Current liabilities $564,000 Noncurrent assets 2,538,000 Long-term liabilities 470,000 Stockholder's equity 2,350,000 Total assets $3,384,000 Total liabilities and stockholder's equity $3,384,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Pharoah was $2,914,000. At December 31, 2026, Pharoah reports the following balance sheet information: Current assets $752,000 Noncurrent assets (including goodwill recognized in purchase) 2,256,000 Current liabilities (658,000) Long-term liabilities (470,000) Net assets $1,880,000 It is determined that the fair value of the Pharoah division is $2,068,000.

The following transactions involving intangible assets of Oriole Corporation occurred on or near December 31, 2025. 1.) Oriole paid Grand Company $520,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Oriole is in business. 2.) Oriole spent $654,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. 3.) In January 2026, Oriole's application for a patent (#2 above) was granted. Legal and registration costs incurred were $247,800. The patent runs for 20 years. The manufacturing process will be useful to Oriole for 10 years. 4.) Oriole incurred $168,000 in successfully defending one of its patents in an infringement suit. The patent expires during December 2029. 5.) Oriole incurred $446,400 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of…

Answer 2

Textbook Question

Chapter 4, Problem 1MCQ

G. Venda, owner of Venda Services, withdrew $25,000 from the business during the current year. The entry to close the withdrawals account at the end of the year is:

Chapter 4, Problem 1MCQ, G. Venda, owner of Venda Services, withdrew 25,000 from the business during the current year. The

Expert Solution & Answer

To determine

The entry to close the withdrawals account at the end of the year.

Answer to Problem 1MCQ

Option (e) is the correct answer.

Explanation of Solution

Person G is the owner of Company V, who has withdrawn $25,000 from the business during the present year. As it is given that the amount is withdrawn, it must be credited and the capital amount should be debited. Hence, the following entry shows that correct answer.

Principles of Financial Accounting., Chapter 4, Problem 1MCQ

Therefore, Option e is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 4, Problem 1MCQ

G. Venda, owner of Venda Services, withdrew $25,000 from the business during the current year. The entry to close the withdrawals account at the end of the year is:

Chapter 4, Problem 1MCQ, G. Venda, owner of Venda Services, withdrew 25,000 from the business during the current year. The

Expert Solution & Answer

To determine

The entry to close the withdrawals account at the end of the year.

Answer to Problem 1MCQ

Option (e) is the correct answer.

Explanation of Solution

Person G is the owner of Company V, who has withdrawn $25,000 from the business during the present year. As it is given that the amount is withdrawn, it must be credited and the capital amount should be debited. Hence, the following entry shows that correct answer.

Principles of Financial Accounting., Chapter 4, Problem 1MCQ

Therefore, Option e is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 4, Problem 1MCQ

G. Venda, owner of Venda Services, withdrew $25,000 from the business during the current year. The entry to close the withdrawals account at the end of the year is:

Chapter 4, Problem 1MCQ, G. Venda, owner of Venda Services, withdrew 25,000 from the business during the current year. The

Expert Solution & Answer

To determine

The entry to close the withdrawals account at the end of the year.

Answer to Problem 1MCQ

Option (e) is the correct answer.

Explanation of Solution

Person G is the owner of Company V, who has withdrawn $25,000 from the business during the present year. As it is given that the amount is withdrawn, it must be credited and the capital amount should be debited. Hence, the following entry shows that correct answer.

Principles of Financial Accounting., Chapter 4, Problem 1MCQ

Therefore, Option e is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

The entry to close the withdrawals account at the end of the year.

Answer to Problem 1MCQ

Option (e) is the correct answer.

Explanation of Solution

Person G is the owner of Company V, who has withdrawn $25,000 from the business during the present year. As it is given that the amount is withdrawn, it must be credited and the capital amount should be debited. Hence, the following entry shows that correct answer.

Principles of Financial Accounting., Chapter 4, Problem 1MCQ

Therefore, Option e is the correct answer.

Answer 8

Expert Solution & Answer

To determine

The entry to close the withdrawals account at the end of the year.

Answer to Problem 1MCQ

Option (e) is the correct answer.

Explanation of Solution

Person G is the owner of Company V, who has withdrawn $25,000 from the business during the present year. As it is given that the amount is withdrawn, it must be credited and the capital amount should be debited. Hence, the following entry shows that correct answer.

Principles of Financial Accounting., Chapter 4, Problem 1MCQ

Therefore, Option e is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

The entry to close the withdrawals account at the end of the year.

Answer 12

Answer to Problem 1MCQ

Option (e) is the correct answer.

Answer 13

Explanation of Solution

Person G is the owner of Company V, who has withdrawn $25,000 from the business during the present year. As it is given that the amount is withdrawn, it must be credited and the capital amount should be debited. Hence, the following entry shows that correct answer.

Principles of Financial Accounting., Chapter 4, Problem 1MCQ

Therefore, Option e is the correct answer.

Answer 14

Ch. 4 - G. Venda, owner of Venda Services, withdrew 25,000...Ch. 4 - The following information is available for the R....Ch. 4 - Which of the following errors would cause the...Ch. 4 - The temporary account used only in the closing...Ch. 4 - Prob. 5MCQ Ch. 4 - Prob. 1DQ Ch. 4 - What accounts are affected by closing entries?...Ch. 4 - What two purposes are accomplished by recording...Ch. 4 - Prob. 4DQ Ch. 4 - Prob. 5DQ

G. Venda, owner of Venda Services, withdrew $25,000 from the business during the current year. The entry to close the withdrawals account at the end of the year is:

Concept explainers

Videos

Answer to Problem 1MCQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 4 Solutions