On the worksheet of Hill Corporation, the income statement debit column equals $78,500 and the income statement credit column equals $69,450. Hill Corporation has a:
A) net loss of $9,050 that is added to the income statement credit column.
B) net income of $4,525 that is added to the income statement debit column.
C) net loss of $9,050 that is added to the balance sheet credit column.
D) net income of $4,525 that is added to the balance sheet debit column.
E) net income of $9,050 that is added to the adjusted trial balance credit column.

Question

Quizplus · Accepted Answer

The income statement debit column represents all the expenses incurred by the Hill Corporation, which is $78,500. The income statement credit column represents all the revenues generated, which is $69,450. As the expenses are more than the revenues, the company has a net loss. Therefore, option A is correct, which states that Hill Corporation has a net loss of $9,050 that is added to the income statement credit column.

On the Worksheet of Hill Corporation, the Income Statement Debit