JournaldrillOwner withdrawal
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
Dana Price, the sole owner of Coastal Dog Grooming, withdraws $1,200 in cash from the business to pay personal bills.
What this exercise teaches
Owner withdrawals are recorded in Owner's Drawings, which is debited and later closed against Owner's Capital. Cash decreases, so it is credited. It is not Wages Expense because the owner of a sole proprietorship is not an employee of the business.
A hint if you get stuck
A withdrawal for personal use reduces equity through a temporary account, not through an expense.
This exercise is part of Pro
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