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

question 140

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 bought a piece of land 5 years ago for $200,000 and did not depreciate the land. This year is the first time that it revalues the land to $300,000.

---

Definitions:

Observational Learning

The process of learning behaviors, skills, or attitudes by watching and imitating the actions of others.

Vicariously

Living through the experiences of another person via imagination or sympathy.

Reinforcement

In behaviorism, a consequence applied that strengthens an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Self-reinforcement

The process of rewarding oneself to encourage a pattern of behavior, enhancing the likelihood of repeating desirable behaviors.