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23 April, 21:46

Grouper Inc. is involved in a lawsuit at December 31, 2020. Prepare the December 31 entry assuming it is probable that Grouper will be liable for $863,600 as a result of this suit. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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  1. 23 April, 23:14
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    Grouper Inc. is involved in a lawsuit at December 31, 2020

    It is given that Grouper will be liable for $863,600 as a result of this suit. Therefore, the journal entry for this situation is as follows;

    On December 31, 2020

    Lawsuit loss A/c Dr. $863,600

    To Lawsuit liability $863,600

    (To record the lawsuit loss of the Grouper Inc.)
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