Solution: Net income for The Yellow Submarine, Inc. was understated in 2005 by $110,000. The entry to record the correction in 2006 includes a: a. Debit to Retained Earnings b. Credit to Retained Earnings c. Debit to Income Summary d. Credit to Income Summary

Problem

Net income for The Yellow Submarine, Inc. was understated in 2005 by $110,000. The entry to record the correction in 2006 includes a:

a. Debit to Retained Earnings

b. Credit to Retained Earnings

c. Debit to Income Summary

d. Credit to Income Summary