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In Each of the Following Situations, What Is the Amount

Question 115

Essay

In each of the following situations, what is the amount of the profit or loss? In each situation, what accounts will be debited and credited, and for what amount, in the journal entry to close the Income Summary account?
1. The total of the debit column in the Income Statement section of the worksheet was $94,000 and the total of the credit column in that section was $104,000.
2. The total in the debit column of the Income Statement section was $200,000 and the total of the credit column was $100,000.
3. The total of the debit column in the Balance Sheet section was $53,000 and the total of the credit column in that section was $55,000.

Correct Answer:

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1. There was a profit of $10,000. Debit ...

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