A lawsult 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 $1,850,000 in penalties. The following entry was recorded: Late in Year 3, a settlement was reached for the company to pay a total of $1,280,000. 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. 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. Journal entry worksheet Record the revision of the liability on the basis of the new estimate. Note: Enter debits before credits. 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 $1,850,000 in penalties. The following entry was recorded: Late in Year 3, a settlement was reached for the company to pay a total of $1,280,000. 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. Is the company required to revise prior years' financial statements as a result of the change? 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 $1,850,000 in penalties. The following entry was recorded: Late in Year 3 , a settlement was reached for the company to pay a total of $1,280,000. 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. 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
