P10.1B (LO 1, 2) AP Vacation Villas had the following selected transactions. Prepare current liability entries and adjusting entries. Feb. 1 Signs a $30,000, eight-month, 5%-interest-bearing note payable to Country Bank and receives $30,000 in cash. 8 Sales on account of $14,500, plus 13% HST. Ignore any cost of goods sold entry. 14 The payroll for the previous week consists of salaries of $15,000. All salaries are subject to CPP of $692 and EI of $282 and withholding taxes of $2,700. The salaries are paid on February 21. The employer's payroll expense is also recorded. 15 Purchases furniture worth $1,975 to be paid for in 30 days. Pays employees the salaries for the pay period ended February 14. 28 Accrues interest on the CountryBank note payable. 28 Accrues the required warranty provision because some of the sales were made under warranty. Of the units sold under warranty, 20 are expected to become defective. Repair costs are estimated to be $25 per unit. Instructions Journalize the February transactions. 21 Taking It Further The accountant at Vacation Villas believes a current liability is a debt that can be expected to be paid in one year. Is the accountant correct