Question

- / 1 ili View Policies Current Attempt in Progress Baxter Company's worksheet had the following balances: Income Statement columns, debit of $37.000 and credit of $49,000 and Balance Sheet columns, debit of $85,000 and credit of $73,000. The net income or net loss for the period is O $12,000 net loss. O not determinable from the information O $12.000 net income. O $49,000 net income. Save for Later Attempts: 0 of 1 used Submit Answer

Answer 1

Solution:

$12,000 Net Income

Explanation:

Income statement - Debit $37,000 and credit $49,000

Debit means expenses and losses and credit means incomes and gains so

Net income = income - expenses = 49000 - 37000 = 12,000

or

Balancesheet - debit = $85,000 and credit = $73,000

Debit means assets and credit means liabilities

Net Income = 85000 - 73000 =12,000