10 Nov The first audit of the books for Hintze Corporatio
The first audit of the books for Hintze Corporation was made for the year ended December 31, 2008. In reviewing the books, the auditor discovered that certain adjustments had been overlooked at the end of 2007 and 2008 and that other items had been improperly recorded. Omissions and other failures for each year are summarized as follows: Prepare journal entries to correct revenue and expense accounts for 2008,and record assets and liabilities that require recognition on the balance sheet as of December 31, 2008. Assume that the nominal accounts for 2008 have not yet been closed into the income summary account.
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