Question

Baxter Company’s worksheet had the following balances: Income Statement columns, debit of $37,000 and credit of $49,000 and Balance Sheet columns, debit of $85,000 and credit of $73,000. The net income or net loss for the period is

Answer 1

Answer:

Explanation:

From the question above;

From the income statement;

1. debit of $37000,

2. Credit of $49000,

The income is $12000, while from the balance sheets,

1. Debit of $85000

2. Credit of $73000,

Income is -$12000,

The net income is $12000 while net loss is also -$12000