Events Ltd finalised their financial statements for the year ended 31 March 2022 and authorised them for issue on 28 July 2022. The new managing director is unsure about the treatment of the following five material events and has asked for your professional advice.

Show whether this is an adjusting event or not and if it is then what adjusting journal entry is required. If it is a nonadjusting event then list the disclosure note that needs to be made.

(i) 05 March 2022 The directors declared a final dividend for the year ended 31 March 2022 of 10 cents per share. The total dividend payable was $550 000.

(ii) 24 April 2022 A fire occurred at one of Events Ltds factories in January 2022, and some machinery was damaged due to the fire. Machinery is measured using the revaluation model. It has now been assessed that the damaged machinery is impaired by $300 000, but this was not recognised in the financial statements as at 31 March 2022.

(iii) 1 May 2022 At the 31 March 2022 balance date, the general ledger inventory account included items of inventory measured at a cost of $600 000. On 1 May 2022, it was discovered that due to the factory fire in January 2022, the net realisable value for these items of inventory is $400 000.

(iv) 15 May 2022 Food Ltd, a significant supplier of Events Ltd, initiated legal proceedings against Events Ltd concerning a breach of contract and is suing Events Ltd for $620 000. The breach of contract happened in February 2022. The legal advisor of Events Ltd thought the likelihood of having to pay this amount of $620 000 was minimal. Events Ltd, therefore, disclosed a contingent liability in the notes.