List of balances for Silver Lining Inc. as of February 28, 2024:
•Capital Account: $280,000 (Credit)
•Drawings: $35,000 (Debit)
•Sales: $480,000 (Credit)
•Purchases: $210,000 (Debit)
•Wages: $55,000 (Debit)
•Utilities: $14,000 (Debit)
•Rent: $26,000 (Debit)
•Miscellaneous Expenses: $5,000 (Debit)
•Profit and Loss: $10,000 (Credit)
Requirements:
1.Calculate total debits and credits.
2.Compute the net income.
3.Discuss the significance of rent expenses.
4.Evaluate the impact of wages on net income.