After the first two closing entries are made, Income Summary has a credit balance of $125,000. What does this indicate about the company’s net income or loss?
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- After the first two closing entries are made, Income Summary has a credit balance of $125,500. What does this indicate about the companys net income or loss?The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.When the "Income Summary" account has a credit account balance of $100,000 after closing entries have been made to it, what does this imply?
- 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 $70,800 and $97,750, respectively. What is the amount of the net income or net loss for the period? Oa. $26,950 of net income Ob. $26,950 of net loss Oc. $70,800 of net loss Od. $97,750 of net incomeDuring the year-end closing, you noted that the 'Income Summary' account had a debit amount of P1,050,000 while credit had P500,000. How much is the profit or loss of the company? Note: If your answer is a profit, please provide letter P after the number, like 3000P If your answer is a loss, please provide letter Lafter the number, like 3000LAfter 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 $72,920 and $90,040, respectively. What is the amount of the net income or net loss for the period?
- The Retained earnings account has a credit balance of $41,000 before closing entries are made. Total revenues for the period are $59,200, total expenses are $41,800, and dividends are $10,600. What is the correct closing entry for the revenue accounts? Multiple Choice Debit Revenue accounts $41,000; credit Retained earnings $41,000. Debit Revenue accounts $59,200; credit Income Summary $59,200. Debit Income Summary $59,200, credit Revenue accounts $59,200. Dahit Roionno arcnunte C5a 200 crelit Rotained earninge 41 000 < Prev 10 of 10 Next e here to search W P 9:40 PM 99% 2/21/202At December 31, 2019, the ledger of Aulani Company includes the following accounts, all havingnormal balances: Sales Revenue, $59,000; Cost of Goods Sold, $31,000; Retained Earnings, $20,000;Interest Expense, $3,200; Dividends, $5,000; Wages Expense $8,000, and Interest Payable, $2,100.Required:1. Prepare the closing entries for Aulani at December 31, 2019.2. How does the closing process affect Aulani’s retained earnings?4. The end-of-period spreadsheet (work sheet) for the current year for TigerPaw shows Balance Sheet columns with a debit total of $630,430 and a credit total of $614,210. This is before the amount for net income or net loss has been included. In preparing the income statement from work sheet, what is the amount of net income or net loss? ACOL D
- Prepare an Income Statement using the following information for DL Enterprises for the month of July 2018. When listing accounts for each category, you are to use them in the order in which they are listed here. If used, type in the account names exactly as written here. Accounts Normal Balances Sales Revenue $62,500 Rental Revenue $15,300 Product Expense $52,200 Wages Expense $18,900 Owner Investment $12,000 Equipment Purchases $56,000 Utilities Expense $1,800 Taxes Expense $400The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: 1. Prepare a multiple-step income statement.2. Prepare a statement of owner’s equity.3. Prepare a balance sheet, assuming that the current portion of the note payable is$7,000.4. Briefly explain how multiple-step and single-step income statements differ.After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $28,000. The entry to close the income summary account will be: __ Debit owner Withdrawals $28,000; credit Income Summary $28,000. __ Debit Income Summary $28,000; credit Owner Withdrawals $28,000. __ Debit Income Summary $28,000; credit Owner Capital $28,000. __ Debit Owner Capital $28,000; credit Income Summary $28,000. __ Credit Owner Capital $28,000; debit Owner Withdrawals $28.000.
