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Under existing standards in IAS $37,$ prepare the December $31$ entry assuming it is probable $($and very likely$)$ that B&A will be liable

for $$780,000$ as a result of this suit. $($Credit account titles are automatically indented when the amount is entered. Do not

indent manually. List debit entry before credit entry. If no entry is required, select $"$No Entry" for the account titles and

enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Litigation Expense

Litigation Liability

eTextbook and Media

Assistance Used

List of Accounts

Attempts: unlimited

$($b$)$

Under existing standards in IAS $37,$ prepare the December $31$ entry, if any, assuming it is probable $($although not likely$)$ that B&A

will be liable for a payment as a result of this suit. $($Credit account titles are automatically indented when the amount is

entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select $"$No Entry" for the

account titles and enter O for the amounts.$)$