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Unformatted text preview: decided in favor of Jones Company. (d) Other litigation related to the spill is possible, but the damage amounts are uncertain. Required: (1) Based on this information, journalize the contingent liabilities associated with the spill. Use the account Damage Awards and Fines to recognize the expense for the period. 10 Points (2) Prepare any note disclosure related to the spill. 15 Points Account Debit Credit EPA Fine $405,000 Accounts Payable $405,000 Employee Damages $165,000 Accounts Payable $165,000 Damage Awards and Fines $570,000 The damage amounts are still uncertain. I t is possible that the total owed for the spill could be $260,000 more from the homeowners case, bringing the total to $830,000. It will most likely be decided in favor of Jones Soda, keeping the total at $570,000. Do this assignment in Word and upload it to the Course Drop Box....
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- Spring '10