Liability recognition and valuation. The transactions listed below relate to Travelers Insurance Company. Indicate whether or not each transaction immediately gives rise to a liability of the company under GAAP. If accounting recognizes a liability, state the account title and amount.

a. The firm receives \(\$ 6,500,000\) from customers for insurance coverage beginning next month.

b. The firm hires its president under a three-year contract beginning next month. The contract calls for \(\$ 750,000\) of compensation each year.

c. The firm receives a bill from its attorneys for \(\$ 1,200,000\) to cover services rendered in defending the company in a successful lawsuit.

d. The firm issues additional common stock, with a par value of \(\$ 3,000,000\), for \(\$ 7,600,000\).

e. The firm has not yet paid employees who earned salaries and commissions totaling \(\$ 950,000\) during the most recent pay period. The employer must also pay payroll taxes of 8 percent of the compensation earned.

f. The firm received a legal notice that it is subject to a lawsuit by a group of customers who allege that the company improperly canceled their insurance. The suit claims damages of \(\$ 6,000,000\).