What is the entry to record owner's drawing of $1,700?

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Multiple Choice

What is the entry to record owner's drawing of $1,700?

Explanation:
When an owner withdraws cash from the business, it reduces the owner's equity and decreases the cash asset. The drawing account is a contra-equity account, so it is increased by a debit. Therefore, you record the withdrawal by debiting the owner’s drawing (Taylor Gordon Drawing) for 1,700 and crediting Cash for 1,700 to reflect the cash leaving the business. Using the owner-specific drawing account helps keep track of each owner's withdrawals, and the entry would be Debit Taylor Gordon Drawing 1,700; Credit Cash 1,700.

When an owner withdraws cash from the business, it reduces the owner's equity and decreases the cash asset. The drawing account is a contra-equity account, so it is increased by a debit. Therefore, you record the withdrawal by debiting the owner’s drawing (Taylor Gordon Drawing) for 1,700 and crediting Cash for 1,700 to reflect the cash leaving the business. Using the owner-specific drawing account helps keep track of each owner's withdrawals, and the entry would be Debit Taylor Gordon Drawing 1,700; Credit Cash 1,700.

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