(L. OBJ. 1, 2) Using debits and credits with the accounting equation [10—15 min]
Link Back to Chapter 1 (Accounting Equation). Jane’s Cream Soda makes specialty soft drinks. At the end of 2010, Jane’s had total assets of $300,000 and liabilities totaling $220,000.
Requirements
1. Write the company’s accounting equation, and label each amount as a debit or a cred it.
2. The business’s total revenues for 2010 were $460,000, and total expenses for the year were $380,000. How much was the business’s net income (or net loss) for 2010? Write the equation to compute the company’s net income, and indicate which element is a debit and which is a credit. Does net income represent a net debit or a net credit?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.