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 $85,300, respectively. What is the amount of the net income or net loss for the period?
A) $7,800 net income
B) $7,800 net loss
C) $85,300 net income
D) $77,500 net loss

Question

Quizplus · Accepted Answer

The net income is the difference between the total credits and the total debits. In this case, the total credits are $85,300 and the total debits are $77,500. Therefore, the net income is $85,300 - $77,500 = $7,800.

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