How would the following errors affect the account balances and the basic accounting equation, Assets = Liabilities + Owners' Equity? How do the misstatements affect income?
1.The purchase of a truck is recorded as an expense instead of an asset.
2.A cash payment on accounts receivable is received but not recorded.
3.Fictitious sales on account are recorded.
4.A clerk misreads a handwritten invoice for repairs and records it as $1,500 instead of $1,800.
5.Payment is received on December 31 for the next three months' rent and is recorded as revenue.
