During the preparation of the worksheet,the $800 balance of the Dennis,Withdrawal account was extended as a debit to the income statement columns.This error will:

Question

Quizplus · Accepted Answer

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, thus understating it by $800.

During the Preparation of the Worksheet,the $800 Balance of the Dennis,Withdrawal