When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $80,000, although his capital
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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 journal entry to record the effect on John's capital due to Danny's withdrawal would include:
A: $5,000 debit to John, capital;
B: $20,000 debit to John, capital;
C: $6,667 debit to John, capital;
D: $5,000 credit to John, capital;
E: $6,667 credit to John, capital
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
Posted Date: