Fiddler Inc., a public company, prepares annual financial statements on December 31. Analysis indicates the following: 1. The company has been sued by an employee for discrimination for $5,000,000 in damages. Legal counsel believes it is unlikely that the company will have to pay any damages. The amount is material ( substantial ) to the company. 2. Employees have accrued earned ) $4,200 in vacation pay benefits at December 31. 3. The company has been sued in a $3,000,000 product liability lawsuit. Legal counsel believes the company will probably have to pay the full amount. 4. On November 1, Fiddler signed a $ 10,000, 6-month, 8% note payable. No interest has been accrued to date. Instructions: Prepare any necessary adjusting entries at December 31