The income statement and balance sheet columns of Rand Company's work sheet reflect the following totals:
-To enter the profit (or loss) for the period into the above work sheet requires an entry to the
A) income statement debit column and the balance sheet credit column.
B) income statement credit column and to the balance sheet debit column.
C) income statement debit column and the income statement credit column.
D) balance sheet debit column and to the balance sheet credit column.

Question

The income statement and balance sheet columns of Rand Company's work sheet reflect the following totals: 
-To enter the profit (or loss) for the period into the above work sheet requires an entry to the
A) income statement debit column and the balance sheet credit column. 
B) income statement credit column and to the balance sheet debit column. 
C) income statement debit column and the income statement credit column. 
D) balance sheet debit column and to the balance sheet credit column.

Quizplus · Accepted Answer

To enter the profit (or loss) for the period into the worksheet, it requires an entry to the income statement credit column (if it's a profit) or debit column (if it's a loss) to balance the income and expenses, and to the balance sheet debit column (if it's a profit) or credit column (if it's a loss) to adjust the equity section accordingly. This reflects the increase (profit) or decrease (loss) in equity resulting from the period's operations.

The Income Statement and Balance Sheet Columns of Rand Company's