After the first two entries in the closing process have been recorded and posted, the debits and credits to Income Summary are $

Question

1 year ago

15

90,000 and $80,000, respectively. What is the amount of net income or net loss for the period

1 answer:

Dafna1 [17] · Answer 1 · 2023-09-26T16:43:37+03:00

The answer is $10,000 net loss.

Given,

The debits and credits to Income Summary are $90,000 and $80,000, respectively.

An income summary is also known as an Income statement.

The debit side of this statement contains the expense for the period.

And the credit side of this statement contains the income for the period.

Therefore, according to the given information expenses are $90,000 and income is $80,000.

Since expenses incurred are greater than the income generated. There is a net loss for the current period.

The amount of the net loss will be calculated as follows:

Net loss = Amount of expenses - Amount of income

= 90000 - 80000

= $10,000

Hence, the amount of net loss for the period is $10,000.

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