pls answer exercise11-10

Exercise 11-10 Accruing a contingency Refer to the Ludeman Security Systems situation in Exercise 11.9 Suppoes be that Ludeman Security Systems' lawyers advise that a preliminary judgment of $300,000 has been e against the company. The company will appeal the decision Required Describe how to report this situation in the Ludeman Security Systems finan cial statements. Journalize any entry required under ASPE. Explanations are not required. Exercise 11-1 Accruing a contingency Refer to the Ludeman Security Systems situation in Exercise 11-9. Suppose that Lu Security Systems' lawyers advise that a preliminary judgment of $300,000 has been rendered against the company. The company will appeal the decision. Reguired Describe how to report this situation in the Ludeman Security Systems' finan- cial statements. Journalize any entry required under ASPE. Explanations are not required. Exercise 11-9 Ludeman Security Systems is a defendant in lawsuits brought against the monitoring ser- Reporting a contingent libity vice of its installed systems. Damages of $1,000,000 are claimed against Ludeman Securit Systems, but the company denies the charges and is vigorously defending itself. In a recent newspaper interview, the president of the company stated that he could not predict the outcome of the lawsuits. Nevertheless, he said management does not believe that any actual liabilities resulting from the lawsuits will significantly affect the company's financial position. Describe what, if any, disclosure Ludeman Security Systems should provide Required of this contingent liability. Total liabilities are $4.0 million. If you believe note disclosure is required, write the note to describe the contingency