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

question 143

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 Insurance Expense instead of to Prepaid Insurance.The after-tax effect of the charge to Insurance Expense was $5,000.
(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:

Substance Use Disorder

A mental disorder characterized by the harmful and compulsive use of psychoactive substances, leading to significant impairment or distress.

Social Problems

Issues that affect a significant number of people within a society, which are believed to be sources of difficulty or menace to the community's wellbeing.

Hazards

Potential sources of danger or harm to health, safety, or well-being.

Nicotine Tolerance

A physiological state where an individual has reduced sensitivity to nicotine due to continuous exposure, leading to the need for increased consumption to achieve the original effects.