Please explain the answer. Thank you.

P11-30B (book/static) Question Help The general ledger of Prompt Ship at June 30, 2018, the end of the company's fiscal year, includes the following account balances before payroll and adjusting entries. (Click the icon to view the account balances.) The additional data needed to develop the payroll and adjusting entries at June 30 are as follows: A (Click the icon to view the additional information.) (Click the icon to view payroll tax rate information.) Read the requirements. Requirements 1 and 2. Using the T-accounts opened for you, insert the unadjusted June 30 balances. Journalize and post the June 30 adjusting entries to the accounts. Identify each adjusting entry by letter. Round to the nearest dollar. We will start with Requirement 2 journalizing the journal entries, to assist us in posting to the T-accounts. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. The long-term debt is payable in annual installments of $39,600, with the next installment due on July 31. On that date, Prompt Ship will also pay one year's interest at 10%. Interest was paid on July 31 of the preceding year. Make the adjusting entry to accrue interest expense at year-end. Date Accounts and Explanation Debit Data Table (a) - X $ 118,000 Accounts Payable Interest Payable Salaries Payable Employee Income Taxes Payable FICA-OASDI Taxes Payable FICA-Medicare Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Unearned Rent Revenue Long-Term Notes Payable 5,400 198,000 Choose from any list or enter any number in the input fields and then click Check Answer. 5 parts Clear All remaining Print Done P11-30B (book/static) A More Info - X 3 Question Help Y efore payroll and adjusting The general ledger of Prompt Ship at entries. E: (Click the icon to view the accour The additional data needed to develop (Click the icon to view the additio For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Read the requirements OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings. Employer: e 30 adjusting entries to the Requirements 1 and 2. Using the T- accounts. Identify each adjusting entri Print Done We will start with Requirement 2, jour the last line of the journal entry table. credits. Select the explanation on a. The long-term debt is payable in annua at 10%. Interest was paid on July 31 of the - X pmpt Ship will also pay one year's interest 1 More Info Date Accounts (a) a. The long-term debt is payable in annual installments of $39,600, with the next installment due on July 31. On that date, Prompt Ship will also pay one year's interest at 10%. Interest was paid on July 31 of the preceding year. Make the adjusting entry to accrue interest expense at year-end. Gross unpaid salaries for the last payroll of the fiscal year were $4,800. Assume that employee income taxes withheld are $920 and that all earnings are subject to OASDI. Record the associated employer taxes payable for the last payroll of the fiscal year, $4,800. Assume that the earnings are not subject to unemployment compensation taxes. d. On February 1, the company collected one year's rent of $5,400 in advance. Print Done Choose from any list or enter any numb narts