What are the major types of subsequent events? Indicatehow each of the following “subsequent events” would bereported.(a) Collection of a note written off in a prior period.(b) Issuance of a large preferred stock offering.(c) Acquisition of a company in a different industry.(d) Destruction of a major plant in a flood.(e) Death of the company’s chief executive officer (CEO).(f) Additional wage costs associated with settlement ofa four-week strike.(g) Settlement of a federal income tax case at considerablymore tax than anticipated at year-end.(h) Change in the product mix from consumer goods toindustrial goods.

Question

What are the major types of subsequent events? Indicate
how each of the following “subsequent events” would be
reported.
(a) Collection of a note written off in a prior period.
(b) Issuance of a large preferred stock offering.
(c) Acquisition of a company in a different industry.
(d) Destruction of a major plant in a flood.
(e) Death of the company’s chief executive officer (CEO).
(f) Additional wage costs associated with settlement of
a four-week strike.
(g) Settlement of a federal income tax case at considerably
more tax than anticipated at year-end.
(h) Change in the product mix from consumer goods to
industrial goods.

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