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


Answer: B

Business

You might also like to view...

The salesperson was using ________ in her sales presentation when she asked, "I was so sorry to hear about the break-in at your warehouse. Is there any way that I can help you deal with this problem?"

A. persuasion B. acceptance signals C. communication control D. empathy E. a trial close

Business

As more developed markets stagnate and become increasingly competitive, many marketers are now targeting growth opportunities in emerging markets

Indicate whether the statement is true or false

Business

Section 552 of the Restatement (Second) of Torts holds accountants liable ________

A) only to those in a privity-of-contract relationship with the accountant B) to any reasonably foreseeable user of the statement the accountant prepares C) to a limited class of intended users of the information D) only to the accountant's clients

Business

Which of the following is a covered person under the medical payments coverage of the PAP?

A) a family member of the named insured if struck by an auto while crossing the street B) a pedestrian struck by the named insured's auto C) the named insured while she is operating her car as a taxi D) a carjacker who is involved in an accident after stealing the insured's car

Business