Liabilities are likely future payments of assets or services to which a company is currently obligated due to past transactions or events. Current liabilities are those that are due within a year and long-term liabilities are those that can be paid after more than a year. The adjustment entries on December 31 for each of the given separate transactions.

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Chapter 11, Problem 15E

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Concept Introduction: Liabilities are likely future payments of assets or services to which a company is currently obligated due to past transactions or events. Current liabilities are those that are due within a year and long-term liabilities are those that can be paid after more than a year.

The adjustment entries on December 31 for each of the given separate transactions.

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