When Danny Withdrew from John,Daniel,Harry,and Danny LLP,he Was Paid $80,000,although

question 25

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.The journal entry of the partnership to record Danny's withdrawal preferably should include :

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

---

Definitions:

Accounting Cycle

A series of steps followed by an organization to track and process financial transactions, from the initial transaction to its inclusion in the financial statements.

Next Accounting Period

The future timeline or interval for which financial records will be prepared and analyzed, immediately following the current reporting period.

Closing Revenue

Closing Revenue typically refers to the total revenue recognized by a company at the end of a financial period.

Expense Accounts

Categories within financial accounting that track money spent or costs incurred by a company in its operational activities.