PROBLEM $07-$ LIABILITY RECOGNITION

$10.$ The obligation to repay a loan made in the current year and due in five years.

Indicate whether or not each of the following items should be recognized as a liability for the organization:

$1.$ The obligation to pay interest next year on bonds that were issued on the balance sheet date.

$2.$ The obligation to pay workers for services already rendered.

$3.$ An agreement to purchase inventory in the following year

$4.$ An agreement to publish and ship magazines next year for cash already received.

$5.$ The obligation to pay dividends from income earned next year

$6.$ Unpaid income taxes from the current year

$7.$ The burden of having a senile president.

$8.$ The obligation of the president to pay for his son's traffic fines.

$9.$ The expectation of replacing worn$-$out equipment.