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In October 2020, a music fan booked and paid $1,000 in advance for a ticket to a concert that was scheduled for January 2021. The

In October 2020, a music fan booked and paid $1,000 in advance for a ticket to a concert that was scheduled for January 2021. The book keeper recorded this as an increase in cash and an increase in income, instead of an increase in a liability. Explain the effect this error would have on the four financial statements for the year 2020.

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