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 show debits of $37,686 and credits of $41,101. This indicates that
A) neither net income or loss can be calculated because it is found on the income statement
B) the company has a net loss of $3,415 for the period
C) the company has a net income of $3,415 for the period
D) the amounts are out of balance and need to be corrected

Question

Quizplus · Accepted Answer

Net income (excess of revenues over expenses) = Total of Balance Sheet Debit column - Total of Balance Sheet Credit column = $37,686 - $41,101 = ($3,415)
Net loss = $3,415

After All of the Account Balances Have Been Extended to the Balance