Exercise 8-12 Determine proper treatment of a contingent liability (LO8-5)

Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships. Required:

1. The likelihood of a payment occurring is probable, and the estimated amount is $1.3 million. 2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1.1 to $1.6 million. 3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.3 million. 4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.3 million. Record the necessary entry for the scenarios given above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000).) can you answer the question i hae being waitingi too long?! thanks, i waited too long. i found the answer myself !

ournal entry worksheet 2 3 4 Record the contingent liability, if necessary, if the likelihood of a payment occurring is probable, and the estimated amount is $1.3 million. Note: Enter debits before credits Transaction Genera dournal Debit Credit 0 Record entry Clear enty View general journal