Keystone Corporation issued its financial statements for the year ended December 31, 2019, on March 10, 2020.

Question:

Keystone issued its for the year ended December 31, 2019, on March 10, 2020. The following events took place before the statements were authorized for issue early in 2020.
a. On January 10, 10,000 ordinary shares of $5 were issued at $66 per share.
b. On March 1, Keystone determined after negotiations with the taxing authorities that income taxes payable for 2019 should be $1,320,000. At December 31, 2019, income taxes payable were recorded at $1,100,000.
Instructions
Discuss how the preceding subsequent events should be reflected in the 2019 Financial Statements
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