The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $22,800; other assets, $148,500; liabilities, $39,600; Morgan, capital, $62,800; Rockwell, capital, $68,900. The other assets were sold for $131,700. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling a.$51,600 b.$62,800 c.$22,800 d.$15,200
The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $22,800; other assets, $148,500; liabilities, $39,600; Morgan, capital, $62,800; Rockwell, capital, $68,900. The other assets were sold for $131,700. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling a.$51,600 b.$62,800 c.$22,800 d.$15,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a.$51,600
b.$62,800
c.$22,800
d.$15,200
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