The closing balance sheet items are given below for Jason Tink in accounting equation form as at 30 June 2014. Transactions for the following month of July are also given.

Transactions for July 2014 were as follows:
July 2 Received $4400 from accounts receivable.
3 Paid $3000 of accounts payable.
4 Reduced mortgage by $30 000.
5 Sent invoice to customer $5600.
7 Purchased office equipment for cash $5200.
9 Recorded cash sales $5000.
10 Recorded credit sales $1800.
14 Paid office rent in cash $850.
23 Cash sales $1000.
31 Drawings by Jason Tink $1300.
a. An income statement for the period ending 31 July 2014
b. A balance sheet as at 31 July 2014.
Required
a. Prepare worksheet entries for the business transactions for the month ended 31 July 2014.
b. At the end of July, Jason realised that the customer invoice sent on 5 July was recorded incorrectly. The correct amount should be $6500. Explain what type of error Jason made and explain the impact of this error on the balance sheet and the income statement.

Assets Cash at bank + Accounts receivable Liabilities Equity Capital $20 000 Accounts payable- . = Mortgage $64 200 $5 400 $4 600 + $45 000