You have recently started to work for Thom Hanks manufacturers of cemetery markers and monuments. During your first month at work you inadvertently recorded as revenue about $6000 of prepayments from Ledger Company. The financial statements had been released within the company when you discovered your error. The month-end closing had not been completed however and you were able to correct the accounts without incident.
Required:
Prepare a short note to accompany the re-released financial statements explaining the mistake.

Question

Quizplus · Accepted Answer

The Answer of You have recently started to work for Thom Hanks manufacturers of cemetery markers and monuments. During your first month at work you inadvertently recorded as revenue about $6000 of prepayments from Ledger Company. The financial statements had been released within the company when you discovered your error. The month-end closing had not been completed however and you were able to correct the accounts without incident.
Required:
Prepare a short note to accompany the re-released financial statements explaining the mistake.

You Have Recently Started to Work for Thom Hanks Manufacturers