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A debit of $5,000 to F. Crane, capital would result because of:

a. Additional investment by F. Crane
b. Withdrawals by F. Crane
c. Net loss
d. Net income

1 Answer

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Final answer:

A debit of $5,000 to F. Crane, capital, indicates a withdrawal by F. Crane, as debits to capital accounts signify decreases, typically from owner withdrawals.

Step-by-step explanation:

A debit of $5,000 to F. Crane, capital would most likely result from withdrawals by F. Crane. In accounting, a debit to an owner's capital account signifies a reduction in the account, which can occur when the owner takes money out of the business for personal use, known as a withdrawal. Additional investments by F. Crane or net income would result in credits to the capital account, increasing the owner's equity, while a net loss would often be recorded in a separate income statement account and then transferred to the capital account.

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