Calculating Profit or Loss Based on Income Statement Columns

What is the amount of profit or loss based on the totals of the income statement columns on the worksheet?

The amount of loss is: a. $10,000 loss

Calculating Profit or Loss

The question asks for the amount of profit or loss based on the totals of the income statement columns on the worksheet, where total debits are $70,000 and total credits are $60,000. To determine the profit or loss, we need to compare the total debits and total credits. If the total debits exceed the total credits, it indicates a loss, while if the total credits exceed the total debits, it indicates a profit. In this case, the total debits are $70,000 and the total credits are $60,000. Since the total debits exceed the total credits, it suggests that there is a loss. The difference between the total debits and total credits is $70,000 - $60,000 = $10,000. Therefore, the correct answer is: a. $10,000 loss Based on the given information, the company has incurred a loss of $10,000 for the period.
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