Solved

Kenham Co Was Organized on April 1, 2022 In Which Worksheet Column Will the Net Income Amount Be

Question 125

Multiple Choice

Kenham Co. was organized on April 1, 2022. The company prepares monthly financial statements. The adjusted trial balance amounts in the April 30 worksheet are shown below.
 DebitCredit  Cash $6,700 Accumulated Depreciation-  Accounts Receivable 600 Equipment 850 Prepaid Insurance 1,800 Notes Payable 5,000 Supplies 1,000 Accounts Payable 1,510 Equipment 15,000 Salaries and Wages Payable 400 Owner’s Drawings 600 Interest Payable 550 Salaries and Wages Expense 9,400 Owner’s Capital 13,000 Insurance Expense 1,200 Service Revenue 15,800 Depreciation Expense 850 Rent Revenue 800 Supplies Expense 200 Utilities Expense 510 Interest Expense 50$37,910$37,910\begin{array}{lrlrr}&\text { Debit}&&\text {Credit }\\\hline\text { Cash } & \$ 6,700 & \text { Accumulated Depreciation- } & \\\text { Accounts Receivable } & 600 & \text { Equipment } & 850 \\\text { Prepaid Insurance } & 1,800 & \text { Notes Payable } & 5,000 \\\text { Supplies } & 1,000 & \text { Accounts Payable } & 1,510 \\\text { Equipment } & 15,000 & \text { Salaries and Wages Payable } & 400\\\text { Owner's Drawings } & 600 & \text { Interest Payable } & 550 \\\text { Salaries and Wages Expense } & 9,400 & \text { Owner's Capital } & 13,000 \\\text { Insurance Expense } & 1,200 & \text { Service Revenue } & 15,800 \\\text { Depreciation Expense } & 850 & \text { Rent Revenue } & 800\\\text { Supplies Expense } & 200 \\\text { Utilities Expense } & 510 \\\text { Interest Expense } & 50\\&\$37,910&&\$37,910\end{array}
In which worksheet column will the net income amount be entered?


A) Adjusted trial balance debit.
B) Income statement credit.
C) Balance sheet credit.
D) Balance sheet debit.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions