Response to the following questions:
1 Which accounts are affected?
Kim Park, Drawing and Cash
2 How is each account classified?
Kim Park, Drawing is an owner's equity account. Cash is an asset account.
3 How is each classification changed?
Owner's equity decreases from an increase in withdrawals. Assets decrease.
4 How is each amount entered in the accounts?
Owner's equity accounts decrease on the debit side. An increase in withdrawals decreases owner's equity. Withdrawal accounts have normal debit balances. Therefore, debit the owner's equity account, Kim Park, Drawing. Assets decrease on the credit side. Therefore, credit the asset account, Cash.