Question can be found below

1. Smiley Coat Company, which prepares annual nancial statements, is preparing adjusting entries on December 31. {101'} Analysis indicates the following: a. The company is the defendant in an employee discrimination lawsuit involving $50,000 of damages. Legal counsel believes it is unlikely that the company will have to pay any damages. b. A potential customer injured himself when he tripped on the wet steps of the company ofce building. The Company did not give notice or do anything to prevent the hazard. They have since negotiated a potential settlement of $200,000 with the individual's lawyer. c. In a separate lawsuit, the Company is being sued for $1 million by an employee who was injured on the job. It is likely that the company will lose this lawsuit, but the reasonable estimate cannot be made of the amount of the expected settlement. d. The company is a defendant in a $T50,000 product liability lawsuit. Legal counsel believes the company probably will have to pay the amount requested. Instructions Identify it you record the contingency on the Balance Sheet, the Notes Section, both, or neither\"? List how much you record it if listed on the Balance Sheet. Where do you record {if you record)? Hovllr much? Balance Sheet, Notes Section, Both, or Neither Leave blank or type NM. if not recorded on the Balance Sheet