My homework question is: If the 3,900 cost of a new microcomputer and printer purchased for office use were recorded s a debit to Purchases, what would be the effect of the error on the balance sheet and income statement in the period in which the error was made?

My answer: The balance sheet would have no effect and the Expenses on the Income statement would be understated.

Is the correct answer?

You can't have an income statement understated without something else being off.

How was this item supposed to be recorded? And did it get recorded that way? So what's that throw off? You're only looking at the incorrect account and not considering the account where it should have been recorded.

Debit equiptment credit cash or you could also credit accts payable. You have to have a dr and cr to make it balance. It would Increase your assets net result