Question

After all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $77,500 and $83,900, respectively. What is the amount of the net income or net loss for the period?

Answer 1

Net income = $6400

Explanation:

As per the question,

Total debit columns after all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet is given,

Total debit = $77,500

Total credit columns after all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet is given,

Total credit = $83,900

The amount of the net income or net loss for the period is given by

= Total credit - Total debit

= $83,900 - $77,500

= $6400

As the outcome is positive, it implies net income.

Hence, the required net income for the period = $6400