You are preparing the financial statements for the year ended October 31, 2014, for Cusik Publishing Company,

Question:

You are preparing the for the year ended October 31, 2014, for Cusik Publishing Company, a weekly newspaper. You began with the trial balance of the ledger, which balanced, and then made the required adjusting entries. To save time, you omitted preparing an adjusted trial balance. After making the adjustments on the work sheet, you extended the balances from the trial balance, adjusted for the adjusting entries, and computed amounts for the Income Statement and columns.
a. When you added the debits and credits in the Income Statement columns, you found that the credits exceeded the debits by $15,000. According to your finding, did Cusik Publishing Company have a profit or a loss?
b. You took the balancing amount from the Income Statement columns to the debit column and found that the total debits exceeded the total credits in the The difference between the total debits and the total credits on the is $30,000, which is two times the amount of the difference you calculated for the Income Statement columns. What is the cause of this difference? (Except for these errors, everything else is correct.)
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
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...