Effect of recording errors on the balance sheet equation Siderurgica Venezolana Sivensa, S.A., is a Venezuelan steel

Question:

Effect of recording errors on the equation Siderurgica Venezolana €œSivensa,€ S.A., is a Venezuelan steel and metalworking company. Assume that during a recent war. Sivensa recorded various transactions with the following journal entries. The company applies IFRS and reports its results in thousands of U.S. dollars. Using the notation O/S (overstated). U/S (understated), or No (no effect), indicate the effects on assets, liabilities, and shareholders€™ equity of any errors in Sivensa€™s recording of each of these transactions. For example, if Sivensa recorded the issue of $10,000 of by debiting Cash and crediting Bonds Payable, the effects of the error air as follows:
Assets€“€“No
Liabilities€“€“O/S $10,000
Shareholders€™ equity€“€“U/S $10,000.
(1) Equipment.................. 10,000
Cash..................... 2,000
Accounts Receivable............ 8,000

Shareholders Equity (Class.) Liabilities Assets +10,000 -2,000 -8,000 %3D

Sivensa acquired equipment costing $10,000 by paying $2,000 cash and signing a note payable for $8,000. It debited Equipment, credited Cash for $2,000, and credited Accounts Receivable for $8,000.
(2) Equipment.................. 4,000
Note Payable................. 4,000

Sivensa placed an order for equipment valued at $4,000 that it will receive next month. Sivensa made a $1,000 deposit when it made the order and promised to pay the rest on delivery of the equipment. Sivensa debited Equipment for $4,000 and credited Notes Payable for $4,000.

(3) Cash..................... 800
Accounts Receivable............ 800

Sivensa received $800 as a deposit from a customer and debited Cash and credited Accounts Receivable for $800. The customer did not owe Sivensa any amounts at the time of this transaction.
(4) Prepaid Rent..................... 1,000
Rent Payable.................. 1,000

Sivensa signed a rental agreement for warehouse space for a one-year period beginning next month. The monthly rental fee of $1,000 is due on the first day of each mo nth. Sivensa debited Prepaid Rent and credited Rent Payable for $1,000.
(5) Sivensa exchanged common stock with a market value of $2,500 for a patent and made no journal entry to record the exchange.
(6) Merchandise Inventories................. 4,900
Cash....................... 4,900

Effect of recording errors on the balance sheet equation Siderur

Sivensa acquired $4,900 of office equipment for cash. It debited Inventory for $4,900 and credited Cash for$4,900.

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