Final answer:
The cause for the Balance Sheet and Statement of Owner's Equity columns not balancing when net income is added could likely be an asset amount incorrectly entered in the Income Statement and Statement of Owner's Equity Debit column, which would disrupt the balance.
Step-by-step explanation:
If the Balance Sheet and Statement of Owner's Equity columns of a worksheet fail to balance when the net income is added to the Balance Sheet and Statement of Owner's Equity Credit column, several issues could be the cause. Looking at the options provided:
- An expense entered in the Balance Sheet and Statement of Owner's Equity Debit column would reduce the net income, as expenses are subtracted from revenues to calculate net income.
- A revenue entered in the Balance Sheet and Statement of Owner's Equity Credit column would typically be correct, as revenues increase net income and should be reflected on the credit side.
- An asset amount entered in the Income Statement and Statement of Owner's Equity Debit column does not usually cause the balance sheet to not tally since assets should be recorded on the balance sheet, but it is necessary to also consider the effect on owner's equity.
- A liability amount entered in the Income Statement and Statement of Owner's Equity Credit column could potentially disrupt the balance if the liability was mistakenly recorded as income or owner's equity instead of as a liability.
However, with the given choices, the most plausible one that could cause the Balance Sheet and Statement of Owner's Equity columns to fail to balance could be option c: An asset amount entered in the Income Statement and Statement of Owner's Equity Debit column. This could happen if an asset were incorrectly classified as an expense, for example, thus causing the Balance Sheet to not balance after accounting for net income.