During the preparation of the worksheet, the $400 balance of the Dennis, Withdrawal account was extended as a debit to the income statement columns. This error will

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Withdrawals by the owner (Dennis) should reduce the owner's equity, not affect the income statement. Extending this as a debit to the income statement columns incorrectly reduces net income by $400, thus understating it by that amount.

During the Preparation of the Worksheet, the $400 Balance of the Dennis