3. Prepare the liability section of Shell Storage Units balance sheet at June 30, 2014

The general ledger of Shell Storage Units at June 30, 2014, the end of the companys fiscal year, includes the following account balances before adjusting entries.

Notes Payable, Short-Term $20,000

Accounts Payable $235,620

Current Portion of Long-term Debt payable

Interest Payable

Salaries payable

Employee Income Tax Payable

Employer Payroll Costs Payable

Employee Insurance Benefits Payable

Estimated Vacation Pay Liability $12,360

Sales Tax and GST Payable $5972

Unearned Rent Revenue $18,000

Long-Term Debt Payable $250,000

The additional data needed to develop the adjusting entries at June 30 are as follows:

A) The $20,000 short-term note payable was issued on February 28. It matures six months from data of issuance and bears interest at 6%.

B) The long-term debt is payable in annual installments of $50,000 with the next installment due on August 31. On that date, Shell Storage Units will also pay one years interest at 3%. Interest was last paid August 31 of the preceding year.

C) Gross Salaries for the last payroll of the fiscal year were $6328. Of this amount, employee payroll withholdings payable were $1365 and salary payable was $4963.

D) Employer Payroll Costs Payable was $820, and Shell Storages liability for employee health insurance was $991.

E) Shell Storage estimates that vacation pay expense is 6% of gross salaries of $147,500 (the $147,500 includes the last payroll of the fiscal year).

F) On March 1, the company collected one years rent of $18,000 in advance.

G) At June 30, Shell Storage is the defendant in a $200,000 lawsuit, which the company expects to win. However, the outcome is uncertain.