Write whether the following events are considered as event occurring after the end of reporting period. Also explain whether these events are adjusting events or non-adjusting. On 12 September, the auditor became aware that a fire burnt down one of TGL’s warehouses, resulting in a loss of 40% of the inventory that was on hand at that date.On 30 September, management discovered that Johnno, a major debtor of TGL who was facing financial difficulties, became bankrupt on 15 September. All sales to Johnno were made before the end of the financial year. djjnsjsd

Event after reporting date are those event which are favourable or unfavourable Which occur between…

Answered: Write whether the following events are…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 4TP: Assume you are employed as the chief financial officer of a corporation and are responsible for...

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Write whether the following events are considered as event occurring after the end of reporting period. Also explain whether these events are adjusting events or non-adjusting.

On 12 September, the auditor became aware that a fire burnt down one of TGL’s warehouses, resulting in a loss of 40% of the inventory that was on hand at that date.
On 30 September, management discovered that Johnno, a major debtor of TGL who was facing financial difficulties, became bankrupt on 15 September. All sales to Johnno were made before the end of the financial year.

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