Calculate Net Income for Ackler Adjusters

What is the net income for Ackler Adjusters based on the provided data?

How do we calculate the net income for Ackler Adjusters?

Net Income Calculation for Ackler Adjusters

To calculate the net income for Ackler Adjusters, we need to compare the total debits and credits from the provided data.

A partial worksheet for Ackler Adjusters is presented below:

Debit Credit Debit Credit

Total 20980 16580 56000 60400

Net income (c) 4400 4400

20980 20980 60400 60400

To calculate net income, compare the total debits and credits, and if there is a difference, determine if it is a net income or net loss based on the higher value. If the totals are equal, there is no net income or loss.

Net income represents the profit earned by a company during a specific period. In the given partial worksheet, net income is represented by "(c)". To calculate net income, we need to consider the difference between the total debits and credits.

In the given worksheet, the total debits are 20980 + 56000 = 76980, and the total credits are 16580 + 60400 = 76980. These totals are equal, which means there is no net income or loss.

If there was a difference between the total debits and credits, we would compare the two and determine if it's a net income or net loss. If the total credits are higher, it indicates a net income. Conversely, if the total debits are higher, it indicates a net loss.

In this case, since the totals are equal, the net income is zero. This means that the company did not generate any profit or incur any loss during the period.

To calculate net income, compare the total debits and credits and determine if it is a net income or net loss based on the difference between the two.