Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required Prepare the liabilities section of the balance sheet for Green Pharmacies on March 1, 2017, after all journal entries have been posted. First, prepare

 Required

Prepare the liabilities section of the balance sheet for Green Pharmacies on March 1, 2017, after all journal entries have been posted. First, prepare a depreciation plan for the Saban Bank mortgage until March 1, 2018.

Prepare the plan for the first three payments, then the remaining months one at a time.

 Information

March 1, 2016: Borrowed $400,000 from Coconut Creek bank. The eight-year 5% promissory note requires payments to be made annually on March 1. Each payment consists of $50,000 Principal plus one year's interest. 

December 1, 2016: Mortgage the warehouse with Saban Bank for $150,000 in cash. The mortgage requires a monthly payment of $6,000. The interest rate of the promissory note is 6% and accrues monthly. The first payment will be made on 1 January 2017. 

31 December 2016: Registered interest accrued on Saban Banknote. 

December 31, 2016: Registered interest accrued on the Coconut Creek Note. 

January 1, 2017: A monthly housing loan payment was made to Saban Bank. 

February 1, 2017: Monthly housing loan payment was made to Saban Bank. 

March 1, 2017: Monthly housing loan payment was made to Saban Bank. 

March 1, 2017: Due to Coconut Creek Bank, the first installment was paid by promissory note. 



Step by Step Solution

3.46 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

Liabilities section of the balance sheet for Green Pharmacies on March 1 2017 Liabilities Notes Paya... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting The Financial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

13th Edition

0136162185, 9780136162186

More Books

Students also viewed these Accounting questions

Question

1. Watch what students do with their free time.

Answered: 1 week ago