Assume that Hahn Consulting erroneously recorded the payment of dividends of ($ 5,000) as a debit to

Question:

Assume that Hahn Consulting erroneously recorded the payment of dividends of $\$ 5,000$ as a debit to Salary Expense.

(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?

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Ali Khawaja

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