A firm recorded various transactions with the journal entries shown below. 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 recording each of these transactions. For example, if a firm recorded the issue of $10,000 of common stock by debiting Cash and crediting Bonds Payable, the effects of the error are shown as follows:

• Assets—No
• Liabilities—O/S $10,000
• Shareholders’ equity—U/S$10,000

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1,000 1,000 Shareholders Equity Liabilities (Class.) Assets +1,000 +1,000 To record the signing of 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 month 2,500 Cash 2,500 Shareholders Equity Liabilities (Class.) Assets +2,500 -2,500 To record the issuance of common stock in the acquisition of a patent. 4,900 Cash 4,900 Shareholders Equity Assets +4,900 -4,900 Liabilities (Class.) To record the acquisition of office equipment for cash