P11-5B The St. Charles Consulting general ledger at September 30, 20X2, the end of the company's fiscal year, includes the following account balances before adjusting entries. Parentheses indicate a debit balance. Accounts Payable.. Current Portion of Long-Term Debt Interest Payable Salary Payable.. Employee Payroll Taxes Payable. $ 88.240 Employer Payroll Taxes Payable. 2,105 3,900 Estimated Vacation Pay Liability. Unearned Rent Revenue Long-Term Debt...... 100,000 The additional data needed to develop the adjusting entries at September 30 are as follows:

a. The long-term debt is payable in annual installments of $50,000, with the next install- ment due on January 31, 20X3. On that date. St. Charles Consulting will also pay one year's interest at 6.6%. Interest was last paid on January 31. (Make the adjusting entry to shift the current installment of the long-term debt to a current liability.)

b. Gross salaries for the last payroll of the fiscal year were $4.319. Of this amount, employee payroll taxes payable were $958, and salary payable was $3,361.

c. Employer payroll taxes payable were $890.

d. St. Charles estimates that vacation pay is 4% of gross salaries.

e. On August 1. the company collected six months' rent of $3,900 in advance.

f. At September 30, St. Charles is the defendant in a $500.000 lawsuit, which the company expects to win. However, the outcome is uncertain. Write the note to report this contingent liability in the financial statements. Required 1. Open the listed accounts, inserting their unadjusted September 30 balances. 2. Journalize and post the September 30 adjusting entries to the accounts opened. Key adjusting entries by letter. 3. Prepare the liability section of St. Charles Consulting's balance sheet at September 30. Show total current liabilities.