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

    Loss:           $475,200 – $145,200        =  ($330,000)     Ovechin:     ($11,600) ´ 0.20/0.40          =  ($5,800)
    Pavelski:     ($330,000+ ´ 0.60                 =                          ($198,000)              Oh:         ($11,600) ´ 0.20/0.40                                =  ($5,800)
    Ovechin:     ($330,000) ´ 0.20              =    ($66,000)
    Oh:              ($330,000) ´ 0.20              =   ($66,000)
 
 Req. 1b                                           (continued) P12-8B
Pavelski, Ovechin, and Oh
Summary of Liquidation Transactions
 Cash +Noncash Assets =LiabilitiesCapital
Pavelski
+ (60%)Ovechin
+ (20%)Oh
+ (20%)
Balances before sale of assets$   27,000$475,200$113,400$   186,400$120,000$  82,400
Sale of assets and sharing of loss  110,400(475,200)               (218,880)*(72,960)* (72,960)
Balances137,400             0113,400(32,480)47,0409,440
Payment of liabilities(113,400)                (113,400)                                            
Balances24,000             0    (32,480)  47,040    9,440
Allocation of Pavelski deficiency—no assets to contribute            0             0             0    32,480** (16,240)**   (16,240)**
Balances24,000             0             0             030,800(6,800)
Allocation of Oh deficiency—no assets to contribute            0             0             0             0  (6,800)      6,800
Balances24,000             0             0             024,0000
Disbursement of cash to partners (24,000)             0              0             0(24,000)             0
Balances$            0$             0$           0$              0$           0$            0