Question
Assume that Sunshine Reality Co. borrowed $300,000 from Columbia First Bank and Trust. In recording the transaction, Sunshine erroneously recorded the receipt as a debit
Assume that Sunshine Reality Co. borrowed $300,000 from Columbia First Bank and Trust. In recording the transaction, Sunshine erroneously recorded the receipt as a debit to Cash, $300,000, and a credit to Fee Earned, $300,000. (A) How would this error affect the equity of the trial balance? (B) How would this error affect the income statement, retained earnings statement, and balance sheet?
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Financial Accounting
Authors: Carl Warren, James M. Reeve, Philip E. Fess
8th Edition
0324025394, 978-0324025392
