Question
2016 Mar.Mar. 1 Borrowed $280,000 from Margate Bank. The eight-year, 12% note requires payments due annually, on March 1. Each payment consists of $35,000 principal
2016 Mar.Mar. 1 Borrowed $280,000 from Margate Bank. The eight-year, 12% note requires payments due annually, on March 1. Each payment consists of $35,000 principal plus one year's interest.Dec. 1 Mortgaged the warehouse for $500,000 cash with Sage Bank. The mortgage requires monthly payments of $5,000. The interest rate on the note is 8% and accrues monthly. The first payment is due on January 1, 2017. 31 Recorded interest accrued on the Sage Bank note. 31 Recorded interest accrued on the Margate Bank note.2017 .Jan. 1 Paid Sage Bank monthly mortgage payment. .Feb. 1 Paid Sage Bank monthly mortgage payment. Mar.M. 1 Paid Sage Bank monthly mortgage payment. 1 Paid first installment on note due to Margate Bank.
The following transactions of
Right Aid
Pharmacies occurred during
2016
and
2017
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Requirements
1. | Journalize the transactions in the Right Aid Pharmacies general journal. Round all answers to the nearest dollar. Explanations are not required. |
2. | Prepare the liabilities section of the balance sheet for Right Aid Pharmacies onMarch 1,2017 after all the journal entries are recorded. |
Requirement 1. Journalize the transactions in the
Right Aid
Pharmacies general journal. Round all answers to the nearest dollar. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.)
Mar.
1,
2016
Borrowed
$280,000
from
Margate
Bank. The
eight-
year,
12%
note requires payments due annually, on
March
1. Each payment consists of
$35,000
principal plus one year's interest.
Date | Accounts | Debit | Credit | ||
2016 |
|
|
| ||
Mar. 1 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Dec.
1,
2016:
Mortgaged the warehouse for
$500,000
cash with
Sage
Bank. The mortgage requires monthly payments of
$5,000.
The interest rate on the note is
8%
and accrues monthly. The first payment is due on January 1,
2017
Date | Accounts | Debit | Credit | ||
2016 |
|
|
| ||
Dec. 1 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Dec.
31,
2016
Recorded interest accrued on the
Sage
Bank note.
Date | Accounts | Debit | Credit | ||
2016 |
|
|
| ||
Dec. 31 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Dec.Dec.
31,
2016
Recorded interest accrued on the
Margate
Bank note.
Date | Accounts | Debit | Credit | ||
2016 |
|
|
| ||
Dec. 31 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Jan.Jan.
1,
2017
Paid
Sage
Bank monthly mortgage payment.
Date | Accounts | Debit | Credit | ||
2017 |
|
|
| ||
Jan. 1 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Feb.
1,
2017
Paid
Sage
Bank monthly mortgage payment.
Date | Accounts | Debit | Credit | ||
2017 |
|
|
| ||
Feb. 1 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Mar.
1,
2017
Paid
Sage
Bank monthly mortgage payment.
Date | Accounts | Debit | Credit | ||
2017 |
|
|
| ||
Mar. 1 |
|
|
|
|
|
|
|
|
|
|
|
|
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