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Unformatted text preview: element is a debit and which is a credit. Does net income represent a net debit or a net credit? Review Exhibit 1-8, page 20, if needed. 1. Bobs accounting equation is total assets of $180,000 (debit) = total liabilities of $100,000 (credit) + total owners equity of $80,000 (credit). 2. Bobs net income was $40,000 for 2008. Bobs total revenues of $240,000 (credit) total expenses of $200,000 (debit) = net income of $40,000 (credit). Net credit...
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- Spring '10