Assume that Blitzkrieg Realty Co. borrowed $25,000 from First Union Bank and Trust. In recording the transaction,
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Assume that Blitzkrieg Realty Co. borrowed $25,000 from First Union Bank and Trust. In recording the transaction, Blitzkrieg erroneously recorded the receipt of $25,000 as a debit to cash, $25,000, and a credit to fees earned, $25,000.
(a) How would this error affect the equality of the trial balance?
(b) How would this error affect the income statement, retained earnings statement, and balance sheet?
AppendixLO1
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Financial Accounting
ISBN: 9780324188035
9th Edition
Authors: Dr Carl S. Warren, Dr James M. Reeve, Philip E. Fess
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