Liability recognition Indicate whether each of the events described below results in a liability under the definitions and characteristics within the Framework. If so, show the amount of the liability. What would the liability be called?

1 A bank loan of $10 000 is obtained, with the company signing an agreement to repay the amount in six months, together with interest of 8 per cent per annum.

2 Electricity used in the past month, worth $230, has not been paid for.

3 A $3000 cheque is received from a tenant for three months’ rent in advance.

4 A company signs a two-year employment contract with a marketing manager. Employment begins next month, at a contract price of $150 000 per year.