Bandu Company's Accounts with the Increases or Decreases That Occurred

question 69

Essay

Bandu Company's accounts with the increases or decreases that occurred during this year are as follows: Except for net income,an investment of $4,000,and a withdrawal of $12,000,no other items affected the capital account during the year.Using the balance sheet equation,calculate net income for this year.

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Definitions:

Adjustment Columns

Special columns found in accounting ledgers and worksheets used for making necessary modifications to accounts at the end of a reporting period.

Depreciation Expense

The cost allocated over the useful life of a tangible asset to account for its decline in value due to use and time.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and available for use.

Adjusting Entry

A journal entry made at the end of an accounting period to update account balances to reflect accurate and fair financial statements.