During the preparation of the worksheet,the $1,000 balance of the Sam,Withdrawal account was extended as a debit to the income statement columns.This error will:

Name: During the preparation of the worksheet,the $1,000 balance of the Sam,Withdrawal account was extended as a debit to the income statement columns.This error will:
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Question

Quizplus · Accepted Answer

The withdrawal account should not affect the income statement. By mistakenly debiting it to the income statement, it reduces the net income by $1,000, thus understating it.

During the Preparation of the Worksheet,the $1,000 Balance of the Sam,Withdrawal