Reference no: EM133197102

Wendell Corporation had a number of material events occur subsequent to the December 31, 20X2 balance sheet. First, there was a write-off of an accounts receivable from a debtor who had suffered from deteriorating financial conditions for the past six years. The debtor filed for bankruptcy on January 23, 20X3. Second, the company acquired a subsidiary on January 23, 20X3. Negotiations had begun in December of 20X2. Third, there was a settlement of an extended litigation on January 23, 20X3. The amount of the settlement was in excess of the recorded year end liability. Fourth, a 3-for-5 reverse stock split was consummated on January 23, 20X3.

You have been asked to consider each of the above material events and determine what impact, if any, they would have on the financial statements which will be issued on March 2, 20X3.