Explain Where Each of the Following Items Should Appear in the Financial

question 71

Essay

Explain where each of the following items should appear in the financial statements of a corporation:
(1)The accounting department discovered that an entry was made last year to Prepaid Insurance instead of to Insurance Expense.The after-tax effect of the charge to Prepaid Insurance was $11,000.
(2)The company grants five of its employees the option to purchase 100 shares of its $5 par value common stock at its current market price of $20 per share anytime with the next five years.None of the employees exercised the options in the current year.

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Definitions:

Woodrow Wilson

The 28th president of the United States (1913-1921), known for leading the country during World War I and for his efforts in shaping the post-war peace settlement, including the founding of the League of Nations.

Progressive Movement

A political and social-reform movement in the late 19th and early 20th centuries that aimed to address the problems caused by industrialization, urbanization, and corruption in government.

1916-1920

A period marked by World War I (1914-1918), significant political and social changes worldwide, and the start of the Roaring Twenties.

Declined

A term indicating a decrease in quantity, quality, or strength over time.