Question

Long-Term Liabilities 789 > Problems Group A P14-32A Journalizing liability transactions and reporting them on the balance sheet The following transactions of Johnson Pharmacies occurred during 2018 and 2019: Learning Objectives 1,5 2. Total Liabilities 5653,334 2018 Mar. 1 Borrowed $450,000 from Coconut Creek 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 $250,000 cash with Saputo Bank. The mortgage requires monthly payments of $8,000. 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 Saputo Bank note. 31 Recorded interest accrued on the Coconut Creek Bank note. 2019 Jan. 1 Paid Saputo Bank monthly mortgage payment. Feb. 1 Paid Saputo Bank monthly mortgage payment. Mar. 1 Paid Saputo Bank monthly mortgage payment 1 Paid first installment on note due to Coconut Creek Bank. Requirements 1. Journalize the transactions in the Johnson Pharmacies general journal. Round to the nearest dollar. Explanations are not required. 2. Prepare the liabilities section of the balance sheet for Johnson Pharmacies on March 1, 2019 after all the journal entries are recorded.

Answer 1

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