I am in need of help with these questions:

Oriole Inc. is involved in a lawsuit at December 31, 2017.

Prepare the December 31 entry assuming it is probable that Oriole will be liable for $975,700as a result of the suit.

Prepare the December 31 entry, if any, assuming it isnotprobable that Oriole will be liable for any payment as a result of this suit.

Oriole, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $254152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4 year useful life and no salvage value. Oriole, Inc.?s incremental borrowing rate is 11% and the rate implicit in the lease (which is known by Oriole, Inc.) is 9%. Assuming that this lease is properly classified as a capital lease, what is the amount of principal reduction recorded when the second lease payment is made in Year 2?

PV Annuity Due

PV Ordinary Annuity

9%, 4 periods3.53129

3.23972

11%, 4 periods3.44371

3.10245

Brief Exercise 13-2 Blossom Company borrowed $49,200 on November 1, 2017, by signing a $49,200, 10%, 3-month note. Prepare Blossom's November 1, 2017, entry; the December 31, 2017, annual adjusting entry; and the February 1, 2018, entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2/1/18 Multiple Choice Question 70 Oriole, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $254152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4 year useful life and no salvage value. Oriole, Inc.'s incremental borrowing rate is 11% and the rate implicit in the lease (which is known by Oriole, Inc.) is 9%. Assuming that this lease is properly classified as a capital lease, what is the amount of principal reduction recorded when the second lease payment is made in Year 2? PV Annuity Due PV Ordinary Annuity 9%, 4 periods 3.53129 3.23972 11%, 4 periods 3.44371 3.10245 $254152 $196252 $150505 $180048