Exercise 8-138 Determine proper treatment of a contingent liability (L08-5) A company 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 $112 million 2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $0.92 to $112 million 3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $112 million 4. The likelihood of a payment occurring is remote, while the estimated potential amount is $112 million Record the necessary entry for the scenarios given above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) View transaction list Journal entry worksheet 1 2 3 4 > Record the contingent liability, if necessary, if the likelihood of a payment occurring is probable, and the estimated amount is $1.12 million Note: Enter debits before credits Transaction General Journal Dobit Credit 1 Record the necessary entry for the scenarios given above. (If no entry is required for a particular tra Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. Fa be entered as 5,500,000.) View transaction list Journal entry worksheet 1 2 3 4 > Record the contingent liability, if necessary, if the likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $0.92 to $1.12 million Note: Enter debits before credits General Journal Debit Credit Transaction 2 Record entry Clear entry View general journal Record the necessary entry for the scenarios given above. (If no entry is required for a particular tr Journal Entry Required in the first account field. Enter your answers in dollars, not in millions. Fc be entered as 5,500,000.) View transaction list Journal entry worksheet 1 2. 4 > Record the contingent liability, if necessary, if the likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.12 million Note: Enter debits before credits General Journal Dobit Credit Transaction 3 Record entry Clear entry View general Journal Record the necessary entry for the scenarios given above. (If no entry is required for a particular tr Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. F be entered as 5,500,000.) View transaction list Journal entry worksheet