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The following balances were recorded in the books of Orange Valley Inc. on May 31,...

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Accounting

  1. The following balances were recorded in the books of Orange Valley Inc. on May 31, 2024. Calculate the net income:

Capital Account: ?320,000 (Credit)
 Drawings: ?35,000 (Debit)
 Sales: ?600,000 (Credit)
 Purchases: ?275,000 (Debit)
 Salaries: ?65,000 (Debit)
 Utilities: ?18,000 (Debit)
 Rent: ?38,000 (Debit)
 Miscellaneous Expenses: ?9,000 (Debit)
 Profit and Loss: ?18,000 (Credit)

Requirements:

  1. Determine total debits and credits.
  2. Calculate the net income.
  3. Analyze the impact of salaries on net income.
  4. Discuss the financial implications of drawings.

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