1. Provisions (Contingencies)

During Y6, Aylmer was involved in two separate lawsuits:

In Y6, a customer who visited the Aylmer corporate office slipped and fell. A lawsuit was filed and a court appearance in-front of a judge occurred. Aylmers attorney believes that it is probable and very likely that Aylmer will be liable for damages in the amount of $600,000 as a result of this suit.

In Y6, a separate lawsuit was brought against Aylmer. Aylmer was sued for patent infringement by Kingsmill Corp. Aylmers attorney believes that it is not probable that Aylmer will be liable for $502,000 of damages claimed by Kingsmill.

NOTE - There is not a spreadsheet in the Excel file. You should determine if an entry should be made or not and make the required entry(ies) as necessary in the Excel tab labelled Journal Entries.

Please make any required calculations and prepare any journal entries