The O'Grady, Pakes, and Lincoln partnership balance sheet reports capital of

$80,000

for O'Grady,

$110,000

for Pakes, and

$45,000

for Lincoln. O'Grady is withdrawing from the firm. The partners have shared profits and losses in the ratio of

(3)/(4)

to O'Grady,

(1)/(8)

to Pakes, and

(1)/(8)

to Lincoln. The partnership agreement states that a withdrawing partner will receive cash equal to the book value of his or her equity. Journalize the withdrawal of O'Grady. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)