0
Because the net income is adding the statements together while the debit column subtracts them. When you add each column up individually, they should equal. IF they do not match, there is error in which you need to track down.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Is net income a debit or credit?
does net income have a normal debit or credit balance
How do you do the income summary?
If there is a net income, debit Income Summary. If there is a net loss, then credit it.
What is the journal entry to close the income summary account when there was net income for the period involves?
You debit the income summary (which has a credit balance due to a positive net income) for the same amount that is on the credit side to close it out, and you credit retained earnings for the same amount.
What is journal entry to taking funds to reserve account?
[Debit] Net income account [Credit] General Reserves
Is net income a debit or credit in the statement of cash flow?
In a statement of cash flow a net income is a credit, which should always be the same amout of cash in your balance sheet. (nice check)
Is net income recorded on the worksheet in the Income Statement Debit column and the Balance Sheet Credit column?
debit column of the income statement and the credit column of the balance sheet.
If The total debit column exceeds the total credit column of the income statement columns on a worksheet?
the company has a net loss
A net loss is entered in the work sheet's?
Income Statement Credit and Balance Sheet Debit columns.
Is net income a debit or credit?
does net income have a normal debit or credit balance
How do you do the income summary?
If there is a net income, debit Income Summary. If there is a net loss, then credit it.
A net loss appears on the work sheet in what column?
debit column of the Income Statement columns
Whats is Net credit margin?
Net credit margin is net interest income minus net credit losses, as a percentage of average managed outstanding balances
What is the journal entry to close the income summary account when there was net income for the period involves?
You debit the income summary (which has a credit balance due to a positive net income) for the same amount that is on the credit side to close it out, and you credit retained earnings for the same amount.
Would a net loss appear in the income statement column of the worksheet?
no. it appears on the debit column on the balance sheet
What is journal entry to taking funds to reserve account?
[Debit] Net income account [Credit] General Reserves
Is net income a debit or credit in the statement of cash flow?
In a statement of cash flow a net income is a credit, which should always be the same amout of cash in your balance sheet. (nice check)
When there is a net loss the entry to close income summary is?
Debt Income Summary Credit Retained Earnings.
