Take the example of a famous lawsuit of Apple vs. Samsung, where Apple sued Samsung for technology theft and violating patent rights. Apple claimed $2.5 billion when the lawsuit began in 2011 but won over $500 million in the final verdict in 2018.

The lawsuit was considered a contingent liability in the books of Samsung ltd, with an estimated value of $700 million.

Prepare journal entries for the year ending 2011, assuming it is probable that Samsung will be liable to pay an amount of $700 million.

Prepare journal entries for the year ending 2011, assuming it is not probable that Samsung will be liable to pay any amount.

Considering no other pending lawsuits, prepare journal entries for the year ending 2018, when Samsung lost the lawsuit and had to pay $500 million.