Keystone Corporations financial statements for the year ended December 31, 2012, were authorized for issue on March

Question:

Keystone Corporation’s financial statements for the year ended December 31, 2012, were authorized for issue on March 10, 2013. The following events took place early in 2013.

  (a) On January 10, 10,000 ordinary shares of $5 par value were issued at $66 per share.
  (b) On March 1, Keystone determined after negotiations with the taxing authorities that income taxes payable for 2012 should be $1,320,000. At December 31, 2012, income taxes payable were recorded at $1,100,000.

Instructions
Discuss how the preceding subsequent events should be reflected in the 2012 financial statements.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0470587287

14th Edition

Authors: kieso, weygandt and warfield.

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