In each of the following situations, what is the amount of profit or loss? In each situation,
Question:
In each of the following situations, what is the amount of profit or loss? In each situation, what account will be debited and credited, and for what amount, in the journal entry to close the Income Summary account?
a. The total of the Debit column in the Income Statement section of the worksheet was $650,000 and the total of the Credit column in that section was $518,000.
b. The total in the Debit column of the Income Statement section was $704,000 and the total of the Credit column was $764,000.
c. The total of the Debit column in the Balance Sheet section of the worksheet was $426,000 and the total of the Credit column in that section was $391,825.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
a Loss of 132000 Debit Retained Earnings for 132000 C...View the full answer
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
