Before calculating the profit for the period,the totals of the income statement debit and credit columns on the worksheet are $60 000 and $80 000 respectively.What is the amount of the profit or loss?

Question

Quizplus · Accepted Answer

The profit is calculated as the difference between the credit and debit columns. Since the credit column ($80,000) is greater than the debit column ($60,000), there is a profit of $20,000.

Before Calculating the Profit for the Period,the Totals of the Income