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Question - Keystone corporation issued its financial statements for the year ended December 312010 on March 102011. The following events took place early 2011.
A. On January 10, 10000 shares of $5 par value common stock were issued at $66 per share.
B. on March 01 Keystone determined after negotiations with the internal revenue service that income taxes payable for 2010 should be $1320000. At Dec 31 2010 income taxes payable were recorded at 1100000.
Discuss how the preceding post balance sheet events should be reflected in the 2010 financial statements.
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