1. For each of the following subsequent events, indicate the appropriate treatment in the financial statements under audit as of December 31, 2019. The audit report is dated February 28, 2020. (1 point each)

1. Adjusting entry required
2. Disclosure only

1. Loss of plant and equipment to a fire on January 31, 2020.
2. Settlement of litigation on January 15, 2020 in excess of the recorded liability.
3. On January 15, 2020, the company agreed to purchase for cash 100% of the outstanding stock of another company.
4. Received a shipment of raw materials on January 10, 2020 which had been shipped December 27, 2019 FOB shipping point.
5. Company issued $5,000,000 in bonds on January 20, 2020.

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