S4-3 Using the worksheet to prepare financial statements

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S4-3 Using the worksheet to prepare financial statements [5-10 min]

Answer the following questions:

Requirements

1. What type of normal balance does the Capital account have—debit or credit?

2. Which type of income statement account has the same type of balance as the
Capital account?

3. Which type of income statement account has the opposite type of balance as the
Capital account?

4. What do we call the difference between total debits and total credits on the income
statement? Into what account is the difference figure closed at the end of the period?