If the enterprise is a sole proprietorship, the owner's compensation should be debited to the Drawing account.
If the enterprise is a corporation, the owner's gross compensation should be debited to a salary expense account.
If the enterprise is a sole proprietorship, the owner's compensation should be debited to the Drawing account.
If the enterprise is a corporation, the owner's gross compensation should be debited to a salary expense account.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com