Wester Supplies Ltd.'s general ledger at their July 31, 2018 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 8.000 5.000 10,000 24,000 400,000 The following information is related to selected transactions of Western Supplies Ltd. This information will be used by the company to prepare adjusting journal entries at July 31, 2018 2. On August 31, 2017, Western Supplies Ltd. signed a 2%, 1-year, $ 80,000 note payable. b. The $ 400,000 long-term debt was payable in annual installments of S 50,000, with the next instalment due March 31, 2019. On that date, Western Supplies Ltd. would also pay 1 year's interest at 4%. Interest was last paid on March 31, 2018 c. Gross salaries for the last payroll of the fiscal year were $ 30,000. Of this amount, employee withholdings were $5,000, and salaries payable was 5 25,000 d. Employer payroll costs were $4,000, and Western Supplies Lad's liability for employee life insurance was $ 500. e Westem Supplies Lid estimated that vacation pay is 5% of gross salaries, which was s 450,000. Note that the $ 450,000 included the last payroll of the fiscal year. 1. On April 01, 2018, Western Supplies Lat. collected 1 year's service contract revenue, paid in advance, worth $ 24,000. It will earn the revenue avenly throughout the year. A10-6 Assignment 10 Al July 31, 2018, Westem Supplies Lad was the defendant in a $ 300.000 lawsuit, which Western Supplies Ltd. expected to win. However, the outcome was uncertain. Required: 1. Open T-accounts for the listed accounts, inserting their unadjusted July 31, 2018 balances. 2. Post the July 31, 2018 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 3. Prepare the liability section of Western Supplies Landes balance sheet at July 31, 2018 Show total current liabilities, long-term liabilities and wallabilities Was there a contingent liability? If yes, write a note to explain it, indicating where the note should appear journal entries