Uptown Hardware's general ledger at June 30, 2017, the end of the company's fiscal year, includes the following account balances before adjusting entries.

The additional data needed to develop the adjusting entries at June 30 are as follows:
a. The $74,000 short-term note payable was issued on July 31, 2016; it matures one year from the date of issuance and bears interest at 5 percent.
b. The long-term debt is payable in annual instalments of $60,000, with the next instalment due February 28, 2018. On that date, Uptown Hardware will also pay one year's interest at 5.5 percent. Interest was last paid on February 28, 2017.
c. Gross salaries for the last payroll of the fiscal year were $21,446. Of this amount, employee withholdings were $4,756 and salaries payable were $16,690.
d. Employer payroll costs were $2,788, and Uptown Hardware's liability for employee life insurance was $300.
e. Uptown Hardware estimates that vacation pay is 6 percent of gross salaries of $240,000 (the $240,000 includes the last payroll of the fiscal year).
f. On March 1, 2017, the company collected one year's service contract revenue of $18,000 in advance. It will earn the revenue evenly during the year.
g. At June 30, 2017, Uptown Hardware is the defendant in a $100,000 lawsuit, which the store expects to win. However, the outcome is uncertain.
Required
1. Open T-accounts for the listed accounts, inserting their unadjusted June 30, 2017, balances.
2. Post the June 30, 2017, adjusting entries to the accounts opened. Round all amounts to the nearest whole dollar.
3. Prepare the liability section of Uptown Hardware's balance sheet at June 30, 2017. Show total current liabilities and total liabilities.
4. Is there a contingent liability? If yes, write the note to describe it and indicate where it should appear.

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Note Payable, Short-Term Accounts Pavable Current Portion of $74,000 Employee Insurance 355,680 Benefits Payable Estimated Vacation Pay Long-Term Debt Payable Interest Payable Salaries Payable Employee Withholdings Payable Employer Payroll Costs Payable Liability GST Payable Property Tax Payable 7,896 4,900 9,284 18,000 300,000 Uened Service Revenue Long-Term Debt Payable