Aliability exists because of a past event that creates a future obligation for future sacrifices. True False Along-term liability can have a current component. True False The matching principle requires that the total interest expense be allocated over the term of the note True False Estimated Habilities include employee health benefits, property taxes, and warranties True False At their fiscal year end, Lorax Corp has an (unadjusted) $62,000 credit balance in their Income Tax Pa yable account. However, a review reveals that the actual liability is $70,000. Lorax Corp should prepar ean adjusting entry to debit Income Tax Expense for $8.000 and credit Income Taxes Payable for $8, 000 True False Employee vacation benefits . we estimated abilities are contingent liabilities become an expense when the employee takes a vacation re not recorded until the employee leaves. . we not required by law. Mejor Company borrowed $12,000 by signing an 8% interest-bearing 45 day note payable to replace an overdue account payable. To record this transaction Major Company should prepare a journalent ry that includes a L credit to Accounts Payable for $12,000 credit to Notes Payable for $12000 debit to Cash for $12,000 . debit to Notes Payable for $12,000 debit to Cash for $12,300 A combined GST and PST rate of 12% applied to taxable supplies is caled ZETO- red to harmonized Sales Tax input Tax Credit combined Sales Tax none of these