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

question 54

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 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.
• ($80,000 - $60,000) ÷ 3 = $6,667

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Definitions:

Renal Artery

The blood vessel that carries oxygen-rich blood to the kidneys for the process of filtration and regulation of blood pressure.

Splenic Artery

A major blood vessel that supplies oxygenated blood to the spleen.

Coronary Arteries

Arteries that supply blood to the heart muscle itself, essential for providing the heart with oxygen-rich blood.

Right

Generally refers to the direction or side opposite of left, but in medical or anatomical contexts, it specifies the side of the organism's body which is to the east when facing north.