The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals: To enter the net income (or loss) for the period into the above worksheet requires an entry to the
A) income statement debit column and the balance sheet credit column.
B) income statement credit column and the balance sheet debit column.
C) income statement debit column and the income statement credit column.
D) balance sheet debit column and the balance sheet credit column.

Question

The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals:  To enter the net income (or loss) for the period into the above worksheet requires an entry to the
A) income statement debit column and the balance sheet credit column. 
B) income statement credit column and the balance sheet debit column. 
C) income statement debit column and the income statement credit column. 
D) balance sheet debit column and the balance sheet credit column.

Quizplus · Accepted Answer

Net income (or loss) is entered as a credit in the income statement column and a debit in the balance sheet column. Therefore, the answer is B - income statement credit column and the balance sheet debit column.

The Income Statement and Balance Sheet Columns of Iron and Wine