The fieldwork for the September 30 , 2020 audit of Reward Corporation ended on December 31, 2020. The financial statements and auditor's report were issued on January 8 , 2021. In each of the highly material independent events related to Gratitude Corporation below, indicate the appropriate action for the events and justify your response with reasons. 

a. On November 1, 2020, one of Reward Corporation major customer BCY was declared bankrupt. BCY financial condition was deteriorating and they owed Reward Corporation $400,000, a large sun of money as of the balance sheet date. The most recent sales had taken place in August 21, 2019, and no cash has been received since that date. 

b. On December 12, 2020, Reward Corporation sold some of its machinery at its book value. 

c. On February 15, 2021, Reward Corporation declared the issuance of bonds.

Answer rating: 100% (QA)

An event that occurs between the date of the auditors report and the date of the balance sheet is ca... View the full answer