25 Dec Refer to the Summary Problem for Your Review, spec
Refer to the Summary Problem for Your Review, specifically the unadjusted trial balance on page 86. Required 1. Write the company s accounting equation and label each element as a debit amount or a credit amount. If you use $28,500 for the owner s equity, why is the accounting equation out of balance? 2. Write the equation to compute Bancroft Management Consulting s net income or net loss for March 2016. Indicate which element is a debit amount and which element is a credit amount. Does net income represent a net debit or a net credit? Does net loss represent a net debit or a net credit? 3. How much did the owner, John Cassiar, withdraw during March 2016? Did the withdrawal represent a debit amount or a credit amount? 4. Considering both the net income (or net loss) and withdrawal for March 2016, by how much did the company s owner s equity increase or decrease? Was the change in owner s equity a debit amount or a credit amount?
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