Question
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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