Asked by Maren Williams on May 20, 2024
Verified
After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?
A) $4,020 net income
B) $36,755 net loss
C) $4,020 net loss
D) $32,735 net income
Net Income
The net income of a company, which is derived by deducting all costs, taxes, and losses from the overall revenue.
Net Loss
The result of a company’s expenses exceeding its revenues during a specific period, indicating a negative financial performance.
Debit Columns
Sections in accounting journals or ledgers where debits are recorded, used for increasing asset and expense accounts and decreasing liability, equity, and revenue accounts.
- Compute the net profit or net deficit using the data from the end-of-period spreadsheet.
Verified Answer
JA
jegan annamalaiMay 24, 2024
Final Answer :
A
Explanation :
The difference between the Debit and Credit columns, $36,755 - $32,735 = $4,020, represents net income because the Debit (assets/expenses) is greater than the Credit (liabilities/revenues/equity), indicating that revenues exceed expenses.
Learning Objectives
- Compute the net profit or net deficit using the data from the end-of-period spreadsheet.