Reference no: EM132468943

Effects of transactions upon financial measurements Five events relating to liabilities are described below:

Problem a. Recorded a bi-weekly payroll, including the issuance of paychecks to employees. Amounts withheld from employees' pay and payroll taxes will be forwarded to appropriate agencies in the near future. (Ignore post-retirement costs.)

Problem b. Made a monthly payment on a 12-month installment note payable, including interest and a partial repayment of the principal amount.

Problem c. Shortly before the maturity date of a six-month bank loan, made arrangements with the bank to refinance the loan on a long-term basis.

Problem d. Made an adjusting entry to record accrued interest payable on a 2-year bank loan. (Interest is paid quarterly.)

Problem e. Made a year-end adjusting entry to amortize a portion of the discount on long-term bonds payable.

• Indicate the immediate effects of each transaction or adjusting entry upon the financial measurements in the five column headings listed below.