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In: Accounting

When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $80,000, although his...

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

Solutions

Expert Solution

answer is C

C: $6,667 debit to John, capital

(80000 - 60000 ) /3= 6666.67 or 6667

ekkarill92 answered 2 years ago
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