The Following Events All Occurred After the Balance Sheet Date

Multiple Choice

The following events all occurred after the balance sheet date (6/30/15) but prior to the auditor's report (9/10/15) . Which one would require an adjustment to the account balances as of 6/30/15?

A) client will market a new series of equity securities ($2 million of preferred stock) on 8/1/15
B) unused equipment on the books at 6/30/15 for $100 000 was disposed of 7/31/15 for $60 000
C) securities costing $30 000 held for temporary investment on 6/30/15 declined in value by one-third when the market took a plunge on 8/15/15
D) inventory valued at $100 000 on 6/30/15 was destroyed in a fire on 8/1/15