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:

Liquidated Damages

A predetermined amount of money stipulated within a contract that one party will pay to the other in the event of a breach.

EEOC

The Equal Employment Opportunity Commission (EEOC) is a federal agency that administers and enforces civil rights laws against workplace discrimination in the United States.

BFOQ Defense

Stands for "Bona Fide Occupational Qualification," it is a defense used by employers to justify discrimination that is reasonably necessary to the normal operation of a particular business.

Title VII Liability

Liability under Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race, color, religion, sex, or national origin.