Question

If the debit subtotal of the Income Statement on the work sheet is $159,000 and the credit subtotal is $147,000, there is a:

Answer 1

Answer:

loss of $12,000

Explanation:

On the debit of the Income Statement, we record the expenses and on the credit we record the Revenues and Incomes. Thus, if debit subtotals are greater than the credit we have a loss. In this case a loss of $12,000 ($159,000 - $147,000).