The following transactions of
SmithSmith
Pharmacies occurred during
20182018
and
2018 & 2019:
More Info 2018 Mar. 1 Borrowed $450,000 from Bartow Bank. The 15-year, 5% 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 $600,000 cash with Sadler Bank. The mortgage requires monthly payments of $10,000. The interest rate on the note is 12% and accrues monthly. The first payment is due on January 1, 2019. 31 Recorded interest accrued on the Sadler Bank note. 31 Recorded interest accrued on the Bartow Bank note. 2019 Jan. 1 Paid Sadler Bank monthly mortgage payment. Feb. 1 Paid Sadler Bank monthly mortgage payment. Mar. 1 Paid Sadler Bank monthly mortgage payment. 1 Paid first installment on note due to Bartow Bank. Print Done The following transactions of Smith Pharmacies occurred during 2018 and 2019: i (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize the transactions in the Smith 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 $450,000 from Bartow Bank. The 15-year, 5% 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 Cash 45000l Notes Pavable 450000 Dec. 1. 2018: Mortgaged the warehouse for $600,000 cash with Sadler Bank. The mortgage requires monthly payments of $10,000. The interest rate on the note is 12% and accrues monthly. The first payment is due on January 1, 2019. Date Accounts Debit Credit 2018 Dec. 1 Cash 600000 Mortgage Payable 600000 Dec 31, 2018: Recorded interest accrued on the Sadler Bank note. Date Accounts Debit 2018 Dec. 31 Interest Expense Interest Payable Dec. 31, 2018: Recorded interest accrued on the Bartow Bank note. Date Accounts Debit Credit 2018 Dec. 31 Interest Expense Interest Payable Jan. 1. 2019: Paid Sadler Bank monthly mortgage payment. Date Accounts Debit Credit 2019 Jan. 1 Interest Payable Mortgage Payable Cash Feb. 1, 2019: Paid Sadler Bank monthly mortgage payment. Date Accounts Debit Credit 2019 Feb. 1 Interest Expense Mortgage Payable Cash Feb. 1, 2019: Paid Sadler Bank monthly mortgage payment. Date Accounts Debit Credit 2019 Feb. 1 Interest Expense Mortgage Payable Cash Mar. 1, 2019: Paid Sadler Bank monthly mortgage payment. Date Accounts Debit Credit 2019 Mar. 1 Interest Expense Mortgage Payable Cash Mar. 1, 2019: Paid first installment on note due to Bartow Bank. Date Accounts Debit Credit 2019 Mar. 1 Interest Expense Mortgage Payable Cash
