Reference no: EM132203828

I need assistance with how the following transactions will impact the financial statements and notes after the close of the Balance Sheet in Dec 2018 as the occurred after.

• On December 31, the commodities handled by the company had been traded in the open market for $1.40 per kilogram. This price had prevailed for two weeks, following an official market report that predicted vastly enlarged supplies; however, no purchases were made at $1.40. The price throughout the preceding year, and several prior years, had been about $2. On January 18, 2019, the price returned to $2, following disclosure of an error in the official calculations of the prior December-correction of which destroyed the expectations of excessive supplies. Inventory at December 31, 2018, had been valued on a lower-of-cost-and-net-realizable-value basis, using the prevailing price known at that time, $1.40.
• On February 1, 2019, the board of directors adopted a resolution accepting an investment banker's offer to guarantee the marketing of $100 million of preferred shares.
• On January 22, 2019, one of the auditee's three major plants burned down, a $50 million loss that was covered to $40 million by insurance.
• This company has a wholly owned but not consolidated subsidiary producing oil in a foreign country. A serious rebellion began in that country on January 18, 2019, and continued beyond the completion of your audit work. There has been extensive coverage of the fighting here.
• During its fiscal year ending December 31, 2018, Diamond Inc. issued common shares to its vice-president of marketing. At the date of issuing these shares, the company also provided the vice-president with a non-interest-bearing loan of $50,000 to purchase the shares. While reviewing the minutes of all the Diamond board of Director's meetings during the audit fieldwork, Diamond's auditor notes that in a meeting on February 12, 2019, the Diamond board agreed to forgive this loan, effective on that day.