Question

Subsequent knowledge of which of the following would cause the entity to adjust its December 31 financial statements?
a. Sale of an issue of new stock for $ 500,000 on January 30.
b. Settlement of a damage lawsuit for a customer’s injury sustained February 15 for $ 10,000.
c. Settlement of litigation in February for $ 100,000 that had been estimated at $ 12,000 in the December 31 financial statements.
d. Storm damage of $ 1 million to the entity’s buildings on March 1.



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  • CreatedOctober 27, 2014
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