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Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Eastern's fiscai year ends December 31 , and the 2021

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Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Eastern's fiscai year ends December 31 , and the 2021 financial statements are issued on March 15, 2022. a. Eastern is involved in a lawsuit resulting from a dispute with a supplier. On February 3. 2022, judgment was rendered against Eastern in the amount of $107 milion plus interest, a total of $122 million. Eastern plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a materal adverse effect on the company. b. In Novernber 2020, the State of Nevada filed suit against Eastern, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste On January 12, 2022, Eastern reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is probable that $140 million wil be required to cover the cost of volations. Eastem believes that the ultimate settlement of this claim will not have a material adverse effect on the company c Eastern is the plaintif in a \$200 milion lawsuit fled against United Steel for damages due to lost profits from rejected contracts and for unpaid receivables. The case is in final appeal and legal counsei advises that it is probable that Eastern will prevail and be awarded $100 milion d. At March 15.2022, Eastern knows a competitor has threatened litigation due to patent infringement. The competitor has not yet filed a lowsuit. Management believes ol lawsuit is reasonably possible, and if a lawsuit is filed, management believes damages of up to $33 muliton are reasonably possble Required: 1. Defermine the appropriate way to repont cach stuation. 2. Piepare the appropilate journal entries for these stuations

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