Journal entry goes all the way to 03/01/2020
X More Info 2018 Mar. 1 Borrowed $330,000 from Naples Bank. The six-year, 14% note requires payments due annually, on March 1. Each payment consists of $55,000 principal plus one year's interest. Dec. 1 Mortgaged the warehouse for $200,000 cash with Southside Bank. The mortgage requires monthly payments of $9,000. The interest rate on the note is 12% and accrues monthly. The first payment is due on January 1, 2019. 31 Recorded interest accrued on the Southside Bank note. 31 Recorded interest accrued on the Naples Bank note. 2019 Jan. 1 Paid Southside Bank monthly mortgage payment. Feb. 1 Paid Southside Bank monthly mortgage payment. Mar. 1 Paid Southside Bank monthly mortgage payment. 1 Paid first installment on note due to Naples Bank. Print Done X Requirements 1. Journalize the transactions in the Discount Pharmacies general journal. Round to the nearest dollar. Explanations are not required. 2. Prepare the liabilities section of the balance sheet for Discount Pharmacies on March 1, 2019 after all the journal entries are recorded. Print Done Requirement 1. Journalize the transactions in the Discount 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, 2018: Borrowed $330,000 from Naples Bank. The six-year, 14% note requires payments due annually, on March 1. Each payment consists of $55,000 principal plus one year's interest. Date Accounts Debit Credit 2018 Mar. 1 Cash 330,000 Notes Payable 330,000 Dec. 1, 2018: Mortgaged the warehouse for $200,000 cash with Southside Bank. The mortgage requires monthly payments of $9,000. The interest rate on the note is 12% and accrues monthly. The first payment is due on January 1, 2019. Date Accounts Debit Credit 2018 Dec. 1 Cash 200,000 Mortgage Payable 200,000 nnnn Dec. 31, 2018: Recorded interest accrued on the Southside Bank note. Date Accounts Debit Credit 2018 Dec. 31 2,000 Interest Expense Interest Payable 2,000 Dec. 31, 2018: Recorded interest accrued on the Naples Bank note. Date Accounts Debit Credit 2018 Dec. 31 Interest Expense 38,500 Interest Payable 38,500 Jan. 1, 2019: Paid Southside Bank monthly mortgage payment. Date Accounts Debit Credit 2019 Jan. 1 Interest Payable 2,000 Mortgage Payable 7,000 n. L Date Accounts Debit Credit 2019 Jan. 1 Interest Payable 2,000 Mortgage Payable 7,000 Cash 9,000 Feb. 1, 2019: Paid Southside Bank monthly mortgage payment. Date Accounts Debit Credit 2019 Feb. 1 Interest Expense 1,930 Mortgage Payable 7,070 Cash 9,000 Mar. 1, 2019: Paid Southside Bank monthly mortgage payment. Date Accounts Debit Credit 2019 Mar. 1 Interest Expense 1,859 Mortgage Payable 7,141 Cash 9,000 Mar. 1, 2019: Paid first installment on note due to Naples Bank. Date Accounts Debit Credit 2019 Mar. 1 7,700 Interest Expense Interest Payable 38,500 55,000 Notes Payable Cash 101,200 Requirement 2. Prepare the liabilities section of the balance sheet for Discount Pharmacies on March 1, 2019 after all the journal entries are recorded. First, prepare an amortization schedule for the Southside 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 Interest Total Ending Principal Payment Balance Expense Payment Balance 12/01/2018 1/01/2019 2/01/2019 3/01/2019 Enter any number in the edit fields and then click Check Answer. 1 Journal Entries Date Accounts Debit Credit 2018 Dec. 1 Cash 200,000 Mortgage Payable 200,000 Dec. 31 2,000 Interest Expense Interest Payable 2,000 2019 Jan. 1 Interest Payable 2,000 Mortgage Payable 7,000 Cash 9,000 Feb. 1 Interest Expense 1,930 Mortgage Payable 7,070 Cash 9,000 Mar. 1 Interest Expense 1,859 Mortgage Payable 7,141 Cash 9,000 Print Done
