Question 3 (25 marks) Coast Supplies Ltd.'s general ledger at their July 31, this year-end included the following account balances before adjusting journal entries: $ 80,000 400,000 Note Payable, Short-Term Accounts Payable Current Portion of Long-Term Debt Payable Interest Payable Salaries Payable Employee Withholdings Payable Employee Payroll Costs Payable Employee Insurance Benefits Payable Estimated Vacation Pay Liability GST Payable Property Tax Payable Unearned Service Revenue Long-Term Debt Payable 5,000 10,000 48,000 400,000 The following information is related to selected transactions of coast Supplies Ltd. This Information will be used by the company to prepare adjusting journal entries at July 31, this year. a. On August 31, last year, Coast Supplies Ltd. signed a 2%, 1-year, S80,000 note payable. b. The $400,000 long-term debt was payable in annual instalments of $50,000, with the next instalment due March 31, next year. On that date, Coast Supplies Ltd. would also pay 1 year's interest at 4%. Interest was last paid on March 31. this year. ACCT1211 ASSIGNMENT#10 QUESTION (Protected view) - Microsoft Word (Product Activation Failed) View Click for more details. Enable Editing year. a. On August 31, last year, Coast Supplies Ltd. signed a 2%, 1-year, $80,000 note payable. b. The $400,000 long-term debt was payable in annual instalments of $50,000, with the next instalment due March 31, next year. On that date, Coast Supplies Ltd. would also pay 1 year's interest at 4%. Interest was last paid on March 31, this year. CH Gross salaries for the last payroll of the fiscal year were $60,000. of this amount, employee withholdings were $10,000, and salaries payable was $50,000 and would be paid in mid August. d. Employer payroll costs were $8,000, and Coast Supplies Ltd.'s liability for employee life insurance was $1,000. e. Coast Supplies Ltd. estimated that vacation pay is 5% of gross salaries, which was $900,000. Note that the $900,000 included the last payroll of the fiscal year. Enable Editing f. On April 01, this year, Coast Supplies Ltd. collected 1 year's service contract revenue, paid in advance, worth $48,000. It will earn the revenue evenly throughout the year. g. At July 31, this year, Coast Supplies Ltd. was the defendant in a $600,000 lawsuit, which Coast Supplies Ltd. expected to win. However, the outcome was uncertain. Required: 1. Open T-accounts for the listed accounts, inserting their unadjusted July 31, this year balances. 2. Post the July 31, this year adjusting journal entries to the accounts opened. Round all amounts to the nearest dollar. Use months (as opposed to actual days) in your calculations for the adjusting journal entries. 3. Prepare the liability section of Coast Supplies Ltd.'s balance sheet at July 31, this year. Show total current liabilities, long-term liabilities and total liabilities. 4. Was there a contingent liability? If yes, write a note to explain it, indicating where the note should appear