Question

Library Hours NOW2 Online teacher X ment/tement Man. don e ssionLocatori progress Calculator The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnershi d tion cash, $25,200, other assets. $149, 100, liabilities, $42,300: Morgan, capital $56,400, Rockwell, capital, $75,600. The other assets were sold for $122,100. 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 25.200 Ob. 338,400 c. $15,000 56.00

Answer 1

Balance sheet of Morgan and Rockwell
	$		$
Liability	Amt	Assets	Amount
Liabilities	42300	Cash	25200
Morgan capital	56400	Other assets	149100
Rockwell capital	75600
Total	174300	Total	174300
Now other assets sold for 122100
Loss of 27000 will be shared in 2:1
New blance sheet
	$		$
Liability	Amt	Assets	Amount
Liabilities	42300	Cash	147300
Morgan capital	38400	Other assets	0
Rockwell capital	66600
Total	147300	Total	147300
Balance left after payment of liabilities
Cash	147300
Less- paid liabilities	42300
Balance for partners	105000
So morgan will receive $38400
(b) is correct