3. (a) What are liabilities? (b) Give four examples of liabilities a company might have and identify the order in which they would be listed on the statement of financial position 4. What is a contra asset account? Why do we use a contra asset account to record accumulated depreciation instead of directly reducing the depreciable asset account? 9. Vathsala Corporation reports the following adjusted account balances, shown in alphabetical order, at the end of its fiscal year, February 28, 2020: Accounts payable $13,000 Income tax payable $4.550 Accounts receivable 28,000 Insurance expende Accumulated depreciation equipment 5.400 Prepaid insurance Cash 18,000 Rent expense Common shares 10,000 Retained earnings Depreciation expense 4400 Salaries payable Dividends declared Salaries expense Equipment 23.450 Supplies Fees earned 89.500 Supplies expense Income tax expense 4.800 Utilities expense Prepare an adjusted trial balance at February 28. 2,000 3.500 2.500 6,000 21,000 3.000 46,400 1,000 4,000 2,400 10. Different types of posting errors are identified below: a. A $1,200 debit to Supplies was posted as a $2,100 debit. b. A $1,000 credit to Cash was posted twice as two credits to Cash. c. A $5,000 debit to Dividends Declared was posted to the Common Shares account. d. A journal entry debiting Cash and crediting Service Revenue for $2,500 was not posted. e. The collection of $500 cash on account was posted as a debit of $500 to Cash and a credit of $500 to Accounts Payable. f. The payment of $1,000 on an account payable owed to the insurance company was posted as a debit to the Insurance Expense account. No credit was posted. For each of the above errors, indicate (a) whether the trial balance will balance (yes or no), (b) the amount of the difference if the trial balance will not balance, and (c) the trial balance column (debit or credit) that will have the larger total. Consider each error separately. Use the following format, in which the first error is given as an example: (a) (b) (c) Error In Balance Difference Larger Column Total No $900 Debit 1