After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the Debit and Credit columns are $77,500 and $83,900, respectively. What is the amount of the net income or net loss for the period?
A) $6,400 of net income
B) $6,400 of net loss
C) $83,900 of net income
D) $77,500 of net loss

Question

Quizplus · Accepted Answer

The net income is calculated by subtracting the total debits from the total credits in the Income Statement columns. Here, $83,900 (credits) - $77,500 (debits) = $6,400, indicating a net income of $6,400.

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