Description
You are business owner and reviewing the financial statements before the accountant closes the books. When you review the Income Statement, you noticed the you don't see Wages Expense on the report for the year. This can't be correct since you paid employees, and Wages Expense is one of the highest expense. Your accountant is gone for the day, but you want to know right away what happened. You understand the accounting cycle and the steps to prepare the financial statements. You know this is a mistake.
What are your steps to figure out what happened? What do you need to do to fix the problem? Where will you record the mistake?
Explanation & Answer
Attached.
Running head: FINANCIAL STATEMENTS
1
Financial statements
Name
Institution
Date
FINANCIAL STATEMENTS
2
Financial statements are the written records which show the financial activities as well as
conditions of a given business organization or entity. Generally, the financial statements present
the exact financial information of the given entity in question. An income statement is one of the
commonl...
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