If a company has a loss in the period, the amount of the loss will appear in the income statement credit column and the balance sheet debit column of the work sheet.

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The income statement is a financial statement that summarizes the revenues, expenses, and profits of a company over a period of time. The balance sheet is a financial statement that summarizes the assets, liabilities, and equity of a company at a specific point in time. When a company has a loss in the period, the amount of the loss will appear in the income statement credit column because it is a deduction from revenue. The amount of the loss will also appear in the balance sheet debit column because it is a decrease in equity.

If a Company Has a Loss in the Period, the Amount