Chapter 11, Problem 11.25AP

1 and 2.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities.  Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

To journalize: The liabilities transactions.

To determine

To Post: June 30, 2016, payroll and adjusting entry to T-account.

3.

To determine

To prepare: The current liabilities section of the balance sheet.