In Each of the Following Situations, What Is the Amount

question 21

Essay

In each of the following situations, what is the amount of profit or loss? In each situation, what account will be debited and credited, and for what amount, in the journal entry to close the Income Summary account?
1. The total of the debit column in the Income Statement section of the worksheet was $84,000 and the total of the credit column in that section was $74,000.
2. The total in the debit column of the Income Statement section was $600,000 and the total of the credit column was $700,000.
3. The total of the debit column in the Balance Sheet section was $90,000 and the total of the credit column in that section was $82,000.

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Definitions:

Advance Dental Care, Inc. v. SunTrust Bank

A legal case concerning financial disputes between a dental care company and a banking institution, likely dealing with issues of loans, financing, or contractual obligations.

Instrumentalist Attitude

An approach focusing on the practical application of tools, theories, or knowledge to achieve specific goals.

Legal Instability

A situation where the law is not consistent or predictable, often caused by frequent changes in legislation or differing court interpretations.

Protecting the Environment

Actions or policies aimed at preserving and safeguarding the natural environment from damage or degradation due to human activities.