On the work sheet, net income is entered in the Income Statement Credit column as well as the Balance Sheet or Statement of Changes in Equity Debit column.

Question

Quizplus · Accepted Answer

Net income is entered in the Income Statement Credit column to show the earnings after expenses, and it is also entered in the Balance Sheet or Statement of Changes in Equity Credit column, not the Debit column, to reflect the increase in equity.

On the Work Sheet, Net Income Is Entered in the Income