Paul Dumas withdrew $10,000 from his business, Dumas Pharmacy, which is organized as a proprietorship. Dumas' accountant

Question:

Paul Dumas withdrew $10,000 from his business, Dumas Pharmacy, which is organized as a proprietorship. Dumas' accountant recorded this withdrawal as an increase in an expense and a decrease in cash. Is this treatment correct? Why or why not?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting Principles Part 1

ISBN: 978-1118306789

6th Canadian edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

See More Books

Question Posted: Mar 15, 2017 10:49 AM

See More Questions

Alessandro Bega withdrew $8,000 from his business, Bega Pharmacy, which is organized as a proprietor- ship. Bega's accountant recorded this withdrawal as an increase in an expense and a decrease in...
In February 2010, Paula King invested an additional $10,000 in her business, Kings Pharmacy, which is organized as a proprietorship. Kings accountant, Lance Jones, recorded this receipt as an...
In February 2012, Betty King invested an additional $10,000 in her business, Kings Pharmacy, which is organized as a proprietorship. Kings accountant, Leroy James, recorded this receipt as an...
Food Enterprises is analyzing the performance of their retail business and have calculated Value At Risk at $17,350,000 under the statistical method at a 95% confidence level, and a mean of $898,000....
What is the basic C-V-P equation? What is a more detailed version of this equation?
One card is selected at random from each of 40 packs. Each pack contains 52 cards and includes 13 clubs. Let C be the number of clubs selected from the 40 packs. a. Show that the variance of C is...
In Figure P28.73, point P is the common center of two circular arcs of wire, the larger of radius $70 \mathrm{~mm}$ and the smaller of radius $20 \mathrm{~mm}$. What are the magnitude and...
The following misstatements are included in the inventory and related records of Westbox Manufacturing Company: 1. An inventory item was priced at $12 each instead of at the correct cost of $12 per...
1. What is Stock Market Analysis. Explain in Detail? 2. Discuss about Nature and Scope of Stock Market Analysis. 3. Discuss about Basics of Stock Market Analysis. 4. What is Investment? Explain in...
Steve makes $82,000 in salary and he has qualified for annual bonuses in each of the last 2 years, $4,500 and $7,500 respectively. His group benefits provide Long Term Disability (LTD) benefits after...
Can a business have a transaction in which only the left (assets) side of the accounting equation is off acted? If yes, give an example.
A company's profit appears directly on the income statement and the statement of owner's equity. It is also included indirectly in the company's balance sheet. Do you agree or disagree? Explain.
Refer to the following financial statements of Quaker Oats Company. Income Statement Balance Sheet continue Using Quakers financial statements and the analysis guidance from the chapter, prepare a...
Briefly discuss the meaning of "lobbyist" in America and explain 3 pros and 3 cons.
what is the thesis statement of the fragility of sanity in "The Tell-Tale Heart"
A rock with a mass of 10 lb falls 100 ft from a cliff to the floor of a canyon. What is the change in potential energy (APE) of the rock?
A sample of gas is placed in an ice bath so that there is 1 0 J of heat transfer out of the sample. At the same time, the gas is compressed by a piston that does 6 0 J of Work on the gas. What is the...
A soap film is being viewed in white light. As the film becomes very much thinner than the wavelength of blue light, the film A ) appears totally black because it reflects no visible light. B )...
Can you think of any situations in which a small standard deviation may be desirable?
Why do markets typically lead to an efficient outcome for buyers and sellers?
Record the purchase on account of a $32,000 delivery truck in the province of British Columbia, where the PST is 7%?
Record the purchase on account of $300 of office supplies and $5,000 of merchandise for resale in the province of Manitoba. The company uses a perpetual inventory system and the purchase of...
Record two payments: one cheque to the Receiver General for GST and one to the Minister of Finance of British Columbia for PST. The balances in the accounts are as follows: GST Payable $6,120, GST...
Scenario: Yarning Circle and Talking Stick Sarah has recently been employed by Blue Bay Early Learning Centre. Sarah is very proud of having just achieved the Diploma of Children's Services and she...
The principal at your school decides to retire, and several well-qualified teachers on the staff apply for the position. Mr. England has been teaching for four years and has his administrator's...
Sandi's parents have been divorced since she was five years old. She is now seven. She lives with her mother and visits her father every other weekend. He brings her to school on Monday mornings...

Paul Dumas withdrew $10,000 from his business, Dumas Pharmacy, which is organized as a proprietorship. Dumas' accountant

Question:

Step by Step Answer:

No this treatment is not proper While the transaction does involve a disburse...View the full answer

Accounting Principles Part 1

Students also viewed these Cost Accounting questions