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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 an expense, about $6,000 of prepayments for insurance. 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.
Partnership Interest
Ownership stake in a partnership, representing rights to its profits and assets.
Accounting Work
The activities involved in maintaining and auditing records and preparing financial reports for a business or individual.
Inventory
The total value of goods and materials held by a company for the purpose of resale or production.
Partnership Interest
An ownership share in a partnership that represents a portion of the entity's assets and income.
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