Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow.
Determine the net income (loss) for the period.
A) Net Income $9,250
B) Net Loss $790
C) Net Loss $5,670
D) Net Income $3,580

Question

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow. 
 Determine the net income (loss) for the period.
A) Net Income $9,250 
B) Net Loss $790 
C) Net Loss $5,670 
D) Net Income $3,580

Quizplus · Accepted Answer

We need to calculate the total amount of Debit side and the total amount of Credit side of the trial balance. 
Total Debit = 60,600 + 680 + 4,800 + 4,400 + 8,000 + 1,200 = $79,680
Total Credit = 75,600 + 1,500 + 6,000 + 9,000 = $92,100
Net Income (Loss) = Total Credit - Total Debit = $12,420 - $8,840 = $3,580
Therefore, the correct option is D. The company has a net income of $3,580 for the period.

Use the Information in the Adjusted Trial Balance for Stockton