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.