Keystone Corporations financial statements for the year ended December 31, 2020, were authorized for issue on March

Question:

Keystone Corporation’s financial statements for the year ended December 31, 2020, were authorized for issue on March 10, 2021. The following events took place early in 2021.

a. On January 10, 10,000 ordinary shares of $5 par value were issued at $66 per share.

b. On March 1, Keystone determined after negotiations with the taxing authorities that income taxes payable for 2020 should be $1,320,000. At December 31, 2020, income taxes payable were recorded at $1,100,000.

Instructions

Discuss how the preceding subsequent events should be reflected in the 2020 financial statements.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...

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