CH24 - E241 a Therefore,.However,thiseventshouldbe disclose

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
E24-1 a. b. The issuance of common stock is an example of a subsequent event which provides e about conditions that did not exist at the balance sheet date but arose subsequent to th Therefore, no adjustment to the financial statements is recorded. However, this event s disclosed either in a note, a supplemental schedule, or evenproforma financial data. The changed estimate of taxes payable is an example of a subsequent event which pr additional evidence about conditions that existed at the balance sheet date. The incom liability existed at December 31, 2010, but the amount was not certain. This event affec estimate previously made and should result in an adjustment of the financial statement correct amount ($1,320,000) would have been recorded at December 31 if it had been Therefore, Keystone should increase income tax expense in the 2010 income stateme $220,000 ($1,320,000-$1,100,000). In the balance sheet, income taxes payable should increased and retained earnings decreased by $220,000.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
vidence  that date.   should be  ovides  e tax  cts the  ts. The   available.  nt by  ld be 
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/16/2010 for the course ACCT acct 103 taught by Professor Rishard during the Spring '10 term at American River.

Page1 / 7

CH24 - E241 a Therefore,.However,thiseventshouldbe disclose

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online