astern's fisca Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. E year ends December 31, and the 2018 financial statements are issued on March 15, 2019. a Eastern is involved in a lawsuilt resulting from a dispute with a supplier On February 3, 2019, judgment was rendered against Eastern in the amount of $114 million plus interest, a total of $129 million. Eastern plans to appeal the judgment and is unable to predict ts outcome though it is not expected to have a material adverse effect on the company b. In November 2017, the State of Nevada filed suit against Eastern, seeking cvil penalties and injunctive relef for violations of environmental laws regulating hazardous waste. On January 12, 2019, Eastern reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is probable that $147 million will be required to cover the cost of violations Eastem believes that the ultimate settlement of this clam will not have a material adverse effect on the company c. Eastern is the plainttf in a $207 million lewsult fililed against United Steel for damages due to lost profits trom rejected contracts and for unpaid recelvables. The case is in final appeal and legal counsel advises that it is probable that Eastern will prevail and be awarded $100 milion d. At March 15, 2019, Eastem knows a competitor has threatened litigation due to patent infringement. The competitor has not yet fled a lawsult. Management believes a lawsuit is reasonably possible, and if a lawsult is filed, management believes damages of up to $40 million are reasonably possible. Required: 1. Determine the appropriate means of reporting each situation 2. Prepare the appropriate journal entries for these situations Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the appropriate means of reporting each situation. Stuation B saann c Situation D Required 2 Journal entry worksheet On February 3, 2019, t was rendered against Journal entry worksheet waste. On January 12, 2019, Eastern s with legal counsel the cost of Clear entry Journal entry worksheet Steel for due to lost profits from s and for unpaid probable that Eastern will prevail and be awarded $100 million. Clear entry n/event, select "No jourr in whole dollars. Journal entry worksheet r has lawsuit. of up to $40 million are Note: Enter debits before credits