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You are auditing 2019 Financial Statements of Hangama Corporation. You discovered the following mistakes. Financial Year 2019 is still open for making adjustments but 2018
You are auditing 2019 Financial Statements of Hangama Corporation. You discovered the following mistakes. Financial Year 2019 is still open for making adjustments but 2018 is closed. a) Accrued bonuses owing in 2018 and 2019 was not recorded at year end. Instead the bonuses were recorded in the following year when paid. Bonus amounts that should be recorded are below Dec 31, 2017 $8.000 (Bonus was paid in 2018) Dec 31, 2018 57.000 (Bonus was paid in 2019 b) in 2017, the company sold a special service type warranty that would expire on 31 Dec 2018. Customers paid $75.000 for this warranty in 2017. No revenue was recognized for these transactions in 2018 Required Piease create correcting journal entries for the mistakes identified above in the space provided below. 1 AB
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