Question
Problem 7 : P12-32A Background: Johnson Pharmacies entered into the transactions listed in the Transaction section below. Assignment: 1) Using the General Journal tab, click
Problem 7 : P12-32A
Background:
Johnson Pharmacies entered into the transactions listed in the Transaction section below.
Assignment:
1) Using the General Journal tab, click Add Transaction to journalize each transaction. Click Post Transaction once you complete the entry, then repeat these steps for each transaction.
2) Click the Reports tab and review the results of recording these transactions on the General Ledger.
3) Click Submit Work when complete.
Transactions:
03/02/2018-- Borrowed $450,000 cash from Coconut Creek Bank. The 15-year, 5% note requires payments due annually on March 1. Each payment consists of $30,000 of principal plus one year's interest.
12/01/2018-- Mortgaged the warehouse for $250,000 cash with Saputo Bank. The mortgage requires monthly payment of $8,000. The interest rate on the note is 12% and accrues monthly. The first payment is due on January 1, 2019.
12/31/2018-- Recorded interest accrued on the Saputo Bank mortgage (round calculations to the nearest dollar).
12/31/2018-- Recorded interest accrued on the Coconut Creek Bank note (round calculations to the nearest dollar).
01/01/2019-- Paid Saputo Bank monthly mortgage payment (round calculations to the nearest dollar).
02/01/2019-- Paid Saputo Bank monthly mortgage payment (round calculations to the nearest dollar).
03/01/2019-- Paid Saputo Bank monthly mortgage payment (round calculations to the nearest dollar).
03/01/2019-- Paid first installment on note due to Coconut Creek Bank (round calculations to the nearest dollar).
Account # | Description | Type |
---|---|---|
10100 | Cash | Current Asset |
10400 | Accounts Receivable | Current Asset |
10500 | Notes Receivable | Current Asset |
10550 | Interest Receivable | Current Asset |
11000 | Land | Property, Plant, and Equipment |
11150 | Building | Property, Plant, and Equipment |
20100 | Accounts Payable | Current Liability |
20200 | Interest Payable | Current Liability |
20250 | Salaries Payable | Current Liability |
21000 | Notes Payable | Long-term Liability |
21050 | Mortgage Payable | Long-term Liability |
30500 | Common Stock | Stockholders' Equity |
30700 | Retained Earnings | Stockholders' Equity |
40100 | Sales Revenue | Sales Revenue |
50100 | Cost of Goods Sold | Cost of Goods Sold |
50350 | Salaries Expense | Operating Expense |
60100 | Interest Revenue | Other Revenue |
70100 | Interest Expense | Other Expense |
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