Response to the following problem:
Keystone Corporation's financial statements for the year ended December 31, 2014, were authorized for issue on March 10, 2015. The following events took place early in 2015.
(a) On January 10, 10,000 ordinary shares of $5 par value were issued at $66 per share.
(b) On March 1, Keystone determined after negotiations with the taxing authorities that income taxes payable for 2014 should be $1,320,000.
At December 31, 2014, income taxes payable were recorded at $1,100,000.
Instructions
Discuss how the preceding subsequent events should be reflected in the 2014 financial statements.