In connection with her audit of the financial statements of Flowmeter, Inc., for the year ended December 31, 20X3, Joan Hirsch, CPA, is aware that certain events and transactions that took place after December 31, 20X3, but before she issues her report dated February 28, 20X4, may affect the company's financial statements.

The following material events or transactions have come to her attention:

a. On January 3, 20X4, Flowmeter, Inc., received a shipment of raw materials from Canada. The materials had been ordered in October 20X3 and shipped FOB shipping point in December 20X3.

b. On January 15, 20X4, the company settled and paid a personal injury claim of a former employee as the result of an accident that had occurred in March 20X3. The company had not previously recorded a liability for the claim.

c. On January \(25,20 \mathrm{X} 4\), the company agreed to purchase for cash the outstanding stock of Porter Electrical Co. The business combination is likely to double the sales volume of Flowmeter, Inc.

d. On February 1, 20X4, a plant owned by Flowmeter, Inc., was damaged by a flood, resulting in an uninsured loss of inventory.

e. On February 5, 20X4, Flowmeter, Inc., issued to an underwriting syndicate \(\$ 2\) million in convertible bonds.

Required:

For each of the above items, indicate how the event or transaction should be reflected in Flowmeter's financial statements and explain the reasons for selecting this method of disclosure.