Question

After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the Debit and Credit columns are $75,000 and $92,550, respectively. What is the amount of the net income or net loss for the period?

Answer 1

Net income = $92,550 - $75,000

net income = $17,550

Step-by-step explanation:

Debit means money that left a purse. it can easily be called expenditure. while credit is money that came into a purse. it can also be called income.

in the case of this question, the income is greater than the expentidure and as such it means there has been a profit(net inncome) for that period.

Therefore, we calculate the net income for te period by deducting the debit from the credit which gives the above subtraction and net income of $17,550.

I hope i was of help.