When Danny Withdrew from John, Daniel, Harry, and Danny, LLP

question 3

Multiple Choice

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:

• A) $6,667 debit to John, Capital.
• B) $6,667 credit to John, Capital.
• C) $20,000 debit to John, Capital.
• D) $5,000 debit to John, Capital.
• E) $5,000 credit to John, Capital.

---

Definitions:

Conscious

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Unconscious

Pertains to the aspects of the mental processes that occur without conscious perception or awareness.

Attraction

The force or influence that draws people together, often leading to friendships, romantic relationships, or other social bonds.

Dependence

A condition of relying on someone or something else for support, sustenance, or assurance.