AC 302 Chapter 24 Question 2

AC 302 Chapter 24 Question 2
Name                        Date
Instructor				Course		
Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E24-2 (Post-Balance-Sheet Events) For each of the following subsequent (post-balance-sheet) events, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financial statements, or (c) neither adjust nor disclose.						
						
						
	"1.   Settlement of federal tax case at a cost considerably in excess of the amount
      expected at year-end."					
						
	2.   Introduction of a new product line.					
	3.   Loss of assembly plant due to fire.					
	4.   Sale of a significant portion of the company's assets.					
	5.   Retirement of the company president.					
	6.   Issuance of a significant number of shares of common stock.					
	7.   Loss of a significant customer.					
	8.   Prolonged employee strike.					
	9.   Material loss on a year-end receivable because of customer's bankruptcy.					
	10. Hiring of a new president.					
	11. Settlement of prior year's litigation against the company.					
	12. Merger with another company of comparable size.					
						
	1	Enter letter		7	Enter letter	
	2	Enter letter		8	Enter letter	
	3	Enter letter		9	Enter letter	
	4	Enter letter		10	Enter letter	
	5	Enter letter		11	Enter letter	
	6	Enter letter		12	Enter letter