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The following transactions of Smith Pharmacies occurred during 2016 and 2017: 2016 March 1 Borrowed $240,000 From Naples Bank. The eight-year, 7% notes requires payment

The following transactions of Smith Pharmacies occurred during 2016 and 2017:

2016

March 1 Borrowed $240,000 From Naples Bank. The eight-year, 7% notes requires payment due annually, on March 1. Each payment consists of $30,000 principal plus one years interest.

Dec. 1mortgaged the warehouse for $150,000 cash with Sawyer Bank. The mortgage requires monthly payments of $6,000. The interest rate on the note is 11% and accrues monthly. The first payment is due on January 1, 2017.

Dec. 31 Recorded interest accrued on the Sawyer Bank note.

Dec. 31 Recorded interest accrued on the Naples Bank note.

2017

Jan 1 Paid Sawyer Bank monthly mortgage payment

Feb 1 Paid Sawyer Bank monthly mortgage payment.

Mar 1 Paid Sawyer Bank monthly mortgage payment

Mar 1 Paid first installment on note due to Naples Bank.

Requirements

Journalize the transactions in the Smith Pharmacies general journal. Round all answers to the nearest dollar. Explanations are not required. Use the below format for each entry.

Date

Accounts and Explanation

Debit

Credit

Prepare the liabilities section of the balance sheet for Smith Pharmacies on March 1, 2017 after all the journal entries are recorded.

Beginning

Principal

Interest

Total

Ending

Balance

Payment

Expense

Payment

Balance

12/01/2016

1/01/2017

2/01/2017

3/01/2017

4/01/2017

5/01/2017

6/01/2017

7/01/2017

8/01/2017

9/01/2017

10/01/2017

11/01/2017

12/01/2017

1/01/2018

2/01/2018

3/01/2018

Now prepare the liabilities section of the balance sheet for Smith Pharmacies on March 1, 2017

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