A lawsuit was filed in October Year 1 against a company. When the financial statements were issued in Year 2, the company had not reached a settlement, but legal counsel advised the company that it was probable the ultimate settlement would be $1,400,000 in penalties. The following entry was recorded: General Journal Loss-litigation Liability-litigation Debit 1,400,000 Credit 1,400,000 Late in Year 3, a settlement was reached for the company to pay a total of $920,000. Required: 1. Prepare any journal entry(s) related to the change. 2. Is the company required to revise prior years' financial statements as a result of the change? 3. Is the company required to provide a disclosure note to report the change? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare any journal entry(s) related to the change. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 Record the revision of the liability on the basis of the new estimate. Note: Enter debits before credits. Event 1 General Journal Debit Credit Required 1 Required 2 Required 3 Is the company required to revise prior years' financial statements as a result of the change? Is the company required to revise prior years' financial statements as a result of the change? < Required 1 Required 3 > A lawsuit was filed in October Year 1 against a company. When the financial statements were issued in Year 2, the company had not reached a settlement, but legal counsel advised the company that it was probable the ultimate settlement would be $1,400,000 in penalties. The following entry was recorded: General Journal Loss-litigation Liability-litigation Debit 1,400,000 Credit 1,400,000 Late in Year 3, a settlement was reached for the company to pay a total of $920,000. Required: 1. Prepare any journal entry(s) related to the change. 2. Is the company required to revise prior years' financial statements as a result of the change? 3. Is the company required to provide a disclosure note to report the change? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Is the company required to provide a disclosure note to report the change? Is the company required to provide a disclosure note to report the change? < Required 2 Required 3 >