If the totals of the Income Statement Debit and Credit columns of a work sheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

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Michael Juarez · Accepted Answer

Final Answer : False, Explanation :  The difference between the Debit and Credit columns should represent the net income, not the net loss. Therefore, the net loss would be -$2,000.

If the totals of the Income Statement Debit and Credit columns of a work sheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

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