Question: BE23-13 (a) Indicate in general journal form how the items below would be entered in a worksheet for the preparation of the statement of cash

BE23-13 (a) Indicate in general journal form how the items below would be entered in a worksheet for the preparation of the statement of cash flows. (a) Net Income is $317,000 my answer was: ANSWER: Account Title Dr. Cr. (a) Operating Net Income $317,000 Retained Earnings $317,000 My problem/question I am posing is: Net income is a reconciling item in the direct method and is a direct computation in the indirect method (that sounds funny). Since net income is "closed" or is included in retained earning on the balance sheet - then that is how you would find the current period net income in a trial balance. Am I on the right track? --------------------------------------------------------------------------------------------------- Please know the teacher has asked me this question which I am uncertain as to what he is looking for. Please help?

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