$1.$

Journalize the transactions in the Elliot Manufacturing general journal. Round to the nearest dollar. Explanations are not required.

$2.$

Prepare the liabilities section of the balance sheet for Elliot Manufacturing on March $1,2026$ after all the journal entries are recorded.

Mar. $1,2025$

Borrowed $$675,000$ from Margate Bank. The $15-$year, $12\%$ note requires payments due annually, on March $1.$ Each payment consists of $$45,000$ principal plus one year's interest.

Dec. $1,2025$

Mortgaged the warehouse for $$450,000$ cash with Sawyer Bank. The mortgage requires monthly payments of $$8,000.$ The interest rate on the note is $8\%$ and accrues monthly. The first payment is due on January $1,2026.$

Dec. $31,2025$

Recorded interest accrued on the Sawyer Bank note.

Dec. $31,2025$

Recorded interest accrued on the Margate Bank note.

Jan. $1,2026$

Paid Sawyer Bank monthly mortgage payment.

Feb. $1,2026$

Paid Sawyer Bank monthly mortgage payment.

Mar. $1,2026$

Paid Sawyer Bank monthly mortgage payment.

Mar. $1,2026$

Paid first installment on note due to Margate Bank.