Madrasah Corporation issued its financial statements for the year ended December 31, 2008, on March 10, 2009.

Question:

Madrasah issued its for the year ended December 31, 2008, on March 10, 2009. The following events took place early in 2009.
(a) On January 10, 10,000 shares of $5 were issued at $66 per share.
(b) On March 1, Madrasah determined after negotiations with the Internal Revenue Service that income taxes payable for 2008 should be $1,270,000. At December 31, 2008, income taxes payable were recorded at $1,100,000.

Instructions
Discuss how the preceding post–balance-sheet events should be reflected in the 2008 Financial Statements
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