After Several Years of Business, Abel, Barney, and Cole Are

question 76

Essay

After several years of business, Abel, Barney, and Cole are liquidating. The following are post-closing account balances.
Non-cash assets are sold for $275,000. Profits and losses are shared equally.
After all liabilities are paid, divide the remaining cash amongst the partners.

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Definitions:

Financial Statement Footnotes

Detailed explanations and additional information provided at the bottom of financial statements, clarifying specific line items.

Two-Statement Approach

A financial reporting method where income tax effects of items reported outside the income statement are recognized directly in equity instead of income statement.

Unrealized Gains

Profits that have been achieved on paper from investments but have not yet been realized through selling the investment.

Other Comprehensive Income (OCI)

Income that is not included in net income, including items that are not realized or not reflected in earnings.