ad of rising, should the airline recognise a liability (and expense) under the Conceptual Framework? L0 5,6,7 Problem 17.1 CONCEPTUAL FRAMEWORK * After conducting an audit of the accounts of Parramatta Ltd, you discover that the following trans actions and events were recorded during the current year. Parramatta Ltd uses the historical cost system 1The company borrowed $600 000 from a bank at an interest rte of 10% to construct a new ware. house. At the completion of construction, the loan was repaid and the following entry was made: Bank Loan Warehouse 600000 60000 Cash at Bank 660000 2. A patent with a cost of $160000 was being amortised over its useful life of 8 years. The amor- tisation entry made at the end of the current year was: Retained Earnings Patents 20000 20000 3. A speed-control device was installed on each of the company's 8 delivery trucks at a cost of S300 each plus GST. The transaction was recorded as follows: Maintenance Expense GST Receivable 2400 240 Cash at Bank 2 640 4. At the beginning of the current year, a new vehicle was purchased for $36000. The vehicle had an estimated useful life of 4 years. Depreciation expense for the year was recorded as follows in order to avoid reporting a loss: Depreciation Expense 2000 Accumulated Depreciation- Vehicle 2000 5. Inventory was acquired at $30 per unit throughout the current year until the last purchase was made in the last month of the year. At that time the company was able to negotiate a special deal and acquired 10000 units at $25 per unit. Ignore GST. The purchase was recorded as follows: Inventory 300 000 Cash at Bank Income 250 000 50 000 tion of assets and liabilities