If a company's revenues are $125,000 and its expenses are $113,000, in which financial statement columns of the worksheet will the net income of $12,000 appear? When expenses exceed revenues, in which columns will the difference appear?

$12,000 will be appeared on the debit side of income statement column and credit side of the balance sheet columns on worksheet.

Explanation:

While working in worksheet the net of revenue and expenses will either be a profit of loss. When Revenue exceeds the Expenses it results in profit and it will appear on the debit side of the income statement section of worksheet and credit side of the balance sheet section of of worksheet.

When Expenses exceed the Revenue it results in loss and it will appear on the credit side of the income statement section of worksheet and debit side of the balance sheet section of of worksheet.

In this example there is a profit of $12,000 ( $125000 - $113,000 ) as revenue is exceeding the expenses, which will be appear on the debit side of income statement section and credit side of balance sheet section.

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