(Solved): b) No entry and no note disclosure. Simon Company is being sued due to a workplace accident. Our la ...

b) No entry and no note disclosure. Simon Company is being sued due to a workplace accident. Our lawyers say that it is not determinable at this time whether we will win or lose the lawsuit. c) Note disclosure. The company may suffer substantial financial losses due to the possibility of a recession in 2022. d) Provision for Loss Due to Lawsuit \( 15,000,000 \) Provision for Liability Due to Lawsuit \( 15,000,000 \) To set up a loss/liability as the company is being sued due to a defective product. Our lawyers say that it is unlikely that we will lose the lawsuit and need to pay \( \$ 15,000,000 \) ( best estimate if did lose the lawsuit - would have substantial negative effect on the company). e) Provision for Gain Due to Lawsuit \( 7,000,000 \) Provision for Receivable Due to Lawsuit. \( 7,000,000 \) To set up an asset/gain related to a lawsuit that Simon has filed against another company. Our lawyers say that it is virtually certain that we will win the lawsuit and receive \( \$ 7,000,000 \). Instructions: Explain whether Oscar's accounting treatment for each of the above situations is correct or incorrect. If you agree that what was done was correct, state so. If not, provide the correct journal entry, state that only a note disclosure is required, or state that neither are required. (2 marks each situation) a) b) c) d) e) 15