Horngren’s Accounting, Volume 2, 11th Canadian Edition by Tracie Miller-Nobles Solution manual

    Bachra:       ($82,500) ´ 0.20                =    ($16,500)
    Lang:           ($82,500) ´ 0.20                =   ($16,500)
 

                                                                          (continued) P12-8A
Req. 1b
Telliher, Bachra, and Lang
Summary of Liquidation Transactions
 Cash +Noncash Assets =LiabilitiesCapital
Telliher
+ (60%)Bachra
+ (20%)Lang
+ (20%)
Balances before sale of assets$  6,750$118,800$28,350$46,600$30,000$20,600
Sale of assets and sharing of loss 27,600(118,800)            (54,720)*(18,240)*(18,240)*
Balances34,350028,350(8,120)11,7602,360
Payment of liabilities(28,350)              (28,350)                                    
Balances6,00000    (8,120)11,7602,360
Allocation of Telliher deficiency—no assets to contribute          0     8,120 (4,060)**(4,060)**
Balances6,000  07,700(1,700)
Allocation of Lang deficiency—no assets to contribute0    (1,700) 1,700 
Balances6,000  06,0000
Disbursement of cash to partner (6,000)                                       0       (6,000)            0
Balances$         0$          0$          0$         0$         0$        0
 
*   Allocation of loss to partners:                                                                          **         Allocation of Telliher deficiency to remaining partners:
    Loss:           $118,800 – $27,600           =                            ($91,200)                                                  Bachra: ($8,120) ´ 0.20/0.40      = ($4,060)
    Telliher:       ($91,200) ´ 0.60                 =                            ($54,720)                                                  Lang: ($8,120) ´ 0.20/0.40      = ($4,060)
    Bachra:       ($91,200) ´ 0.20                =    ($18,240)