Liability recognition Indicate whether or not each of the following events immediately gives rise to the recognition of a liability. If a liability is recognised, state the account title and the...

Liability recognition Indicate whether or not each of the following events immediately gives rise to the recognition of a liability. If a liability is recognised, state the account title and the amount. 1 A firm signs a contract to purchase at least $40 000 worth of merchandise during the next two months. 2 A cheque for $240 for a two-year subscription to a magazine is received. 3 A construction company agrees to build a bridge for $2 million. A down payment of $200 000 is received upon signing the contract, and the remainder is due when the bridge is completed. 4 During the last pay period, employees earned wages amounting to $24 500 for which they have not been paid. The employer is also liable for payroll taxes of 8 per cent of the wages earned. 5 A company is informed by a previous employee that he is suing the company for $300 000 for wrongful dismissal.