journal

date

particulars

debit ($)

credit ($)

2018

march 1 cash account debit 350000

margate bank 350000

dec 1 cash account debit 150000

sundi bank 150000

dec 31 interest expense(margate ) debit 41250

to accrual interest 41250

dec 31 interest expense (sundi) debit 5500

to accrued interest 5500

dec 31 profit and loss account debit 46750

to interest expense ( 41250+5500) 46750

2019

jan 1 sundi bank account debit 10000

accrued interest debit 5500

to cash 15500

feb 1 sundi bank account debit 10000

interest expense debit 5500

to cash 15500

march 1 sundi bank account debit 10000

interest expense debit 5500

to cash 15500

march 1 margate bank account debit 50000

accrued interest debit 41250

interest expense debit 8250

to cash 99500

Requirement 2. Prepare the liabilities section of the balance sheet for Wholesale Pharmacies on

March 1,2019 after all the journal entries are recorded. First, prepare an amortization schedule for the

Sandi Bank mortgage to March 1, 2020.

Prepare the schedule for the first three payments, then the remaining months one at a time. (Round your answers to the nearest whole dollar.)

Review the related journal entries you prepared in Requirement 1

.

	Beginning	Principal	Interest	Total	Ending
	Balance	Payment	Expense	Payment	Balance
12/01/2018
1/01/2019
2/01/2019
3/01/2019

4/01/2019

5/01/2019

6/01/2019

7/01/2019

8/01/2019

9/01/2019

10/01/2019

11/01/2019

12/01/2019

1/01/2020

2/01/2020

3/01/2020

Now prepare the liabilities section of the balance sheet for

Wholesale Pharmacies on March 1, 2019.

(If a box is not used in the table leave the box empty; do not select a label or enter a zero.)

Review the amortization schedule you prepared above.

Wholesale Pharmacies
Balance Sheet (Partial)
March 1, 2019
	Liabilities