Jane’s Cream Soda, Inc., makes specialty soft drinks. At the end of 2010, Jane’s had total assets of \($300,000\) and liabilities totaling $220,000.

Requirements 

1. Write the company’s accounting equation, and label each amount as a debit or a credit.

2. The business’s total revenues for 2010 were \($460,000\), and total expenses for the year were \($380,000\). How much was the business’s net income (or net loss) for 2010? Write the equation to compute the company’s net income, and indicate which element is a debit and which is a credit. Does net income represent a net debit or a net credit?