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 $270,000 from Nelson Bank. The nine-year, 6% note requires payments due annually, on March 1. Each payment consists of $30,000 principal plus one year's interest. Date Accounts Debit Credit 2018 Mar. 1 Dec. 1, 2018: Mortgaged the warehouse for $550,000 cash with Saban Bank. The mortgage requires monthly payments of $6,000. The interest rate on the note is 4% and accrues monthly. The first payment is due on January 1, 2019. Date Accounts Debit Credit 2018 Dec. 1 Dec. 31, 2018: Recorded interest accrued on the Saban Bank note. Date Accounts Debit Debit Credit 2018 Dec. 31 Dec. 31, 2018: Recorded interest accrued on the Nelson Bank note. Date Accounts Debit Credit 2018 Dec. 31 Jan. 1, 2019: Paid Saban Bank monthly mortgage payment. Date Accounts Debit Credit 2019 Jan. 1 Feb. 1, 2019: Paid Saban Bank monthly mortgage payment. Date Accounts Debit Credit 2019 Feb. 1 TU. ILI UNUIT D ") 999 ) Date Accounts Debit Credit 2019 Mar. 1 Mar. 1, 2019: Paid first installment on note due to Nelson Bank. Date Accounts Debit Credit 2019 Mar. 1 Requirement 2. Prepare the liabilities section of the balance sheet for Discount Pharmacies on March 1, 2019 after all the journal entries are recorded. 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 Saban 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 9/01/2018 10/01/2019 11/01/2019 12/01/2019 1/01/2020 LLLLLLLLL iFi HEHE Beginning Balance Principal Payment Interest Expense Total Payment Ending Balance 12/01/2018 1/01/2018 2/01/2019 3/01/2019 4/01/2019 5/01/2019 6/01/2018 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 Discount 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) JU12020 Now prepare the liabilities section of the balance sheet for Discount 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. Discount Pharmacies Balance Sheet (Partial) March 1, 2019 Liabilities More Info 2018 Mar. 1 Borrowed $270,000 from Nelson Bank. The nine-year, 6% note requires payments due annually, on March 1. Each payment consists of $30,000 principal plus one year's interest. Dec. 1 Mortgaged the warehouse for $550,000 cash with Saban Bank. The mortgage requires monthly payments of $6,000. The interest rate on the note is 4% and accrues monthly. The first payment is due on January 1, 2019. 31 Recorded interest accrued on the Saban Bank note. 31 Recorded interest accrued on the Nelson Bank note. 2019 Jan. 1 Paid Saban Bank monthly mortgage payment. Feb. 1 Paid Saban Bank monthly mortgage payment. Mar. 1 Paid Saban Bank monthly mortgage payment. 1 Paid first installment on note due to Nelson Bank
