Question: When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $80,000, although his capital account balance was only $60,000. The four partners

When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he

When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $80,000, although his capital account balance was only $60,000. The four partners shared net income and losses equally, and no revaluation will take place. The journal entry to record the effect on John's capital due to Danny's withdrawal would include: [3 points) $6,667 debit to John, Capital. $5,000 debit to John, Capital. $20,000 debit to John, Capital. $5,000 credit to John, Capital. $6,667 credit to John, Capital

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Quadros Inc., a Portuguese firm was acquired by a U.S. company on January 1, 2017. Selected account balances are available for the year ended December 31, 2018, and are stated in Euro, the local...

Q:

Quadros Inc., a Portuguese firm was acquired by a U.S. company on January 1, 2017. Selected account balances are available for the year ended December 31, 2018, and are stated in Euro, the local...

Q:

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...

Q:

1) The disadvantage of the partnership form of business organization compared to corporations, include: A) The legal requirements for formation. B) Unlimited liability for the partners. C) The...

Q:

When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $80,000, although his capital account balance was only $60,000. The four partners shared net income and losses equally. The...

Q:

When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $80,000, although his capital account balance was only $60,000. The four partners shared net income and losses equally, and...

Q:

19. When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $80,000, although his capital account balance was only $60,000. The four partners shared net income and losses equally....

Q:

When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $80,000, although his capital account balance was only $60,000. The four partners shared net income and losses equally. The...

Q:

33 (2 points) When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $81,000, although his capital account balance was only $60,000. The four partners shared net income and losses...

Q:

14. When Danny withdrew from John, Daniel, Harry and Danny LLP, he was pald $80,000, although his capital account balance was only $60,000. The four partners shared net income and losses equally. The...

Q:

Describe the accounting concepts that focus on determining the amount of cost, when costs should be recorded, and to what costs should be compared.

Q:

Andre Corporation manufactures inexpensive pens. Some of the company's data was misplaced. Use the following information to replace the lost data: Required: a. What are the flexible-budget revenues...

Q:

Which of the following is not required to be disclosed under IFRS for operating leases? The expense relating to low - value lease exemptions. The amount of lease commitments for short - term leases...

Q:

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Q:

2 How are instrumental and humanistic influences in organizational requirements and management practices being managed and reconciled in postcolonial countries?

Q:

4 What are the different stakeholder needs and expectations in post-colonial countries, and how are companies identifying these, and reconciling them in their management practices?

Q:

3 How are multinational companies that operate in post-colonial countries successfully adapting people management practices to local needs and expectations?