Tell if the Assets, Liability, Retained Earnings, Revenue, and Expense are Overstated, Understated, or No Effect for question.

1) Sales for the first four days of January 2022 are recorded as of December 31, 2021.

2) $12,000 1 year insurance policy with an effective date of 8/1/21 was purchased and recorded as prepaid insurance. No further entries have been recorded.

3) During the 2021, the company received a $6500 cash advance from a customer for merchandise to be manufactured and shipped in 2022. The $6500 was credited to servie revenue. No further entries have been recorded.

4)The journal entry for depreciation on equipment for 2021 was recorded for $56000. The amount should have been $66000.