please help with all

Several months ago, Ayers Industries Inc. experlenced a hazardous materlals spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $460,000. The company is contesting the fine. In addition, an employee is seeioing $580,000 in damages related to the spa, Lastly, a homeowner has sued the company for $290,000. The homeowner lives 30 miles from the plant, but believes that the incident has reduced the home's resale value by $290,000. Ayers' legal counsel believes that it is probable that the EPA fine will stand. In addition, counsel indicates that an out-of-court settiement of $250,000 has recently been reached with the employee. The final papers will be signed next week. Counsel believes that the homeowner's case is much weaker and will be decided in favor of Ayers. other litigation related to the spill is possible, but the damage amounts are uncertain. a. Joumalize the contingent liablities associated with the hazardous materials spill. Use the account "Damage Awards and Fines" to recognize the expense for the period. If an amount box does not require an entry, leave it blank. This is on acerued exgense adjusting entry? b. The company experienced a harardous materials spill at one of its plants during the previous pertod. This spelt has resulted in a number of lawsuls to which the company is a party. The Environmental Protection Agency (EPA) has fined the company 5 , which the company is contesting in court. Althaugh the cempany admit fault, legal counsel believes that the fine payment is V. In addition, an employee has sued the company. A i of-court settiement has been reached with the employee. The EPh fne and out-of-court settemient have been recognized as far the pericd. There is one other outstanding iswsult related to this incident, Couinsel believe that the lawsuit has menit other lawsults and unknown liablities may arise from this incident