State whether or not each of the following events would result in a liability being recognised in the accounts at 30 June. If so, what will the liability be called? If not, explain the reasons why it would not be recognised as a liability.

1. Taxes for the year ended 30 June, which are not payable until October.

2. Wages to be paid on 2 July to cover the two-week period up to 30 June.

3. The company sells washing machines and gives a one-year warranty to repair or replace any faulty machines.

4. A construction company receives a $5 million advance in June for a contract. The work will commence in July.

5. The company has signed a contract to pay its managing director $500 000 per annum (inflation adjusted) for the next four years.

6. On 1 June, the company is informed that it is being sued for damages of $1 million caused by a faulty product. The company denies liability.

7. The company will go to arbitration in July to determine the amount of payment to repair environmental damage caused by one of its factories.