Question: When Danny withdrew from John, Daniel, Harry, and Danny LLP, he was paid $75,000, although his capital account balance was only $60,000. The four partners

When Danny withdrew from John, Daniel, Harry, and Danny LLP, he was paid $75,000, although his capital account balance was only $60,000. The four partners shared net income and losses equally. The journal entry of the partnership to record Danny's withdrawal would be:

Danny Capital 60,000 Cash 60,000

Danny Capital 75,000 Cash 75,000

Danny Capital 60,000 John Capital 5,000 Daniel Capital 5,000 Harry Capital 5,000 Cash 75,000

Danny Capital 60,000 Operating Expense 15,000 Cash 75,000

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