Entries for Notes Payable A business issued a 90-day, 5% note payment of the note at maturity, including interest. Assume a 360-day year If an amount box does not require an entry, leave it blank or $100,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the Contingent Lia Several months ago, Ayers In EPA) fined the company $460,000. The company is contesting the fine. In addition, an employee is seeking $390,000 in dama Lastly, a homeowner has sued the company for $290,000. The home's resale value by $290,000o dustries Inc. experienced a hazardous materials spill at one of its plants. As a result, the Envir Protection Agency homeowner lives 30 miles from the plant, but beleves that the incident has reduced the Ayers' legal counsel believes that it is probable that the EPA fine will stand. In addition, counsel indicates that an out-of-court settlement of $170,000 has recently been reached with the employee. The final papers will be signed next week. Counsel believes that the homeowner's case is much weaker and will be decided in favor of Ayers. Other litigation related to the spill is possible, but the damage amounts are uncertain. a. Journalize the contingent liabilities associated with the hazardous materials spill. Use the account "Damage Awards and Fines" to recognize the expense for the period. If an amount box does not require an entry, leave it blank. b. The company experienced a hazardous materials spill at one of its plants during the previous period. This spill has resulted in a number of lawsuits to which the company is a party. The Environmental Protection Agency (EPA) has fined the company s. which the company s contesting in court admit fault, legal counsel believes that the fine payment is .In addition, an employee Although the company has sued the company. A been recognized as believe that the lawsuit has merit. Other lawsuits and unknown labilities may arise from this incident. out-of-court settlement has been reached with the employee. The EPA fine and out-of-court settlement have for the period. There is one other outstanding lawsuit related to this incident. Counsel A $950,000 bond issue on which there is an unamortized premium of $81,000 is redeemed for $767,000 ournalize the redemption of the bonds. If an amount box does not require an entry, leave it blank