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. 1 mortgaged 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