On a worksheet, the income statement debit column totals$11,000and the credit column totals$9,500following statements is correct? A. The company had a net loss of$1,500. B. The company's revenues were greater than expenses. C. The company had a net income of$1,500. D. None of the above is correct.
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On a worksheet, the income statement debit column totals$11,000and the credit column totals$9,500following statements is correct? A. The company had a net loss of$1,500. B. The company's revenues were greater than expenses. C. The company had a net income of$1,500. D. None of the above is correct.
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- The receipt of $8,000 cash for fees earned was recorded by Langley Consulting as an increase in cash of $8,000 and a decrease in retained earnings (revenues) of $8,000. What is the effect of this error on the accounting equation? A. Total assets will exceed total liabilities and stockholders’ equity by $8,000. B. Total assets will be less than total liabilities and stockholders’ equity by $8,000. C. Total assets will exceed total liabilities and stockholders’ equity by $16,000. D. The error will not affect the accounting equation.The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant? a.There is a net loss of $21,720. b.The accounts are out of balance, indicating that an error has been made. c.The accounts have not been updated. d.There is a net income of $21,720.As of January 1, Terrace Waters, Capital had a credit balance of $500,000. During the year, withdrawals totaled $10,000, and the business incurred a net loss of $320,000.a. Compute the balance of Terrace Waters, Capital as of the end of the year.b. Assuming that there have been no recording errors, will the balance sheetprepared at December 31 balance? Explain.
- A company had revenues of $75,000 and expenses of $62,000 for the accounting period. The owner withdrew $8,000 in cash during the same period. Which of the following entries could NOT be a closing entry? a. Debit Income Summary $75,000; credit Revenues $75,000. b. Debit Revenues $75,000; credit Income Summary $75,000. c. Debit Income Summary $62,000, credit Expenses $62,000. d. Debit Income Summary $13,000; credit Owner's, Capital $13,000.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 $76,310 and $99,000, respectively. What is the amount of the net income or net loss for the period? a.$22,690 of net income b.$76,310 of net loss c.$22,690 of net loss d.$99,000 of net incomeWoods, Inc. earned revenues of $17,000 and incurred expenses of $7,500. The company declared and paid cash dividends of $1,500. What is the balance in the Income Summary account after closing net income or loss to the Retained Earnings account? A. credit balance of $9,500 B. debit balance of $17,000 C. credit balance of $7,500 D. balance of $0
- The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $29,696 and credits are $68,162. What does this information mean to the accountant? a.net loss of $38,466 b.the accounts are out of balance, indicating an error has been made c.the accounts have not been updated d.net income of $38,466The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $28,670 and credits are $67,915. What does this information mean to the accountant? a.net income of $39,245 b.the accounts are out of balance, indicating an error has been made c.net loss of $39,245 d.the accounts have not been updatedAs of January 1, Retained Earnings had a credit balance of $58,800. During the year, dividends totaled $1,600, and the business incurred a net loss of $82,300. Compute the balance of Retained Earnings as of the end of the year? a. Debit (negative) balance? $____ ? b. Credit (positive) balance? $_____ ?
- Castile Inc. had a beginning balance of $2,300 in its Accounts Receivable account. The ending balance of Accounts Receivable was $3,000. During the period, Castile recognized $37,000 of revenue on account. Castile’s Salaries Payable account has a beginning balance of $1,800 and an ending balance of $1,200. During the period, the company recognized $33,800 of accrued salary expense. Required a. Based on the information provided, determine the amount of net income. b. Based on the information provided, determine the amount of net cash flow from operating activities.As of January 1, Retained Earnings had a credit balance of $61,100 . During the year, dividends totaled $1,600 , and the business incurred a net loss of $85,500 .\\na. Compute the balance of Retained Earnings as of the end of the year.\\nDebit (negative) balance ✓✓ $ ,x .\\nb. Assuming that there have been no recording errors, will the balance sheet prepared at December 31 balance?\\nFeedback\\nCheck My Work\\na. Set up a T account for the retained earnings account. Retained Earnings accounts have normal credit balances. Net income, net losses an dividends are all adjustments to retained earnings.\\nb. Each properly recorded transaction that affects retained earnings must maintain the double-entry accounting system and the equality of the accounting equation: Assets = Liabilities + Stockholders' Equity.From the listed items below, what is net income (loss)? Accounts Payable $600 Accounts Receivable 2,250 Cash 2,875 Service Revenue 5,950 Notes Payable 700 Jill Luckovich, Capital 6,725 Office Furniture $3,000 Jill Luckovich, Withdrawals 350 Rent Expense 2,500 Salaries Expense 2,200 Telephone Expense 1,250 Select one: a. $6,375 b. $0 c. $5,950 d. $6,725 e. $1,250