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

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.