More InfoBorrowed $975,000 from Nelson Bank. The 15-year, 7% note requires payments due annually, onMarch 1. Each payment consists of $65,000 principal plus one year's interest.Mortgaged the warehouse for $500,000 cash with Sawyer Bank. The mortgage requires monthlypayments of $5,000. The interest rate on the note is 6% and accrues monthly. The first payment is dueon January 1, 2019.Mar. 1, 2018Dec. 1, 2018Dec. 31, 2018Recorded interest accrued on the Sawyer Bank note.Dec. 31, 2018Recorded interest accrued on the Nelson Bank note.Jan. 1, 2019Paid Sawyer Bank monthly mortgage payment.Feb. 1, 2019Paid Sawyer Bank monthly mortgage payment.Mar. 1, 2019Paid Sawyer Bank monthly mortgage payment.Mar. 1, 2019Paid first installment on note due to Nelson Bank.PrintDoneall the journal entries are recorded.e first three payments, then the remaining months one at a time. (Round your answers to the nearest whole dollar.)Requirements1. Journalize the transactions in the Right Aid Pharmacies general journal.Round to the nearest dollar. Explanations are not required.2. Prepare the liabilities section of the balance sheet for Right Aid Pharmacieson March 1, 2019 after all the journal entries are recorded.PrintDone More InfoBorrowed $975,000 from Nelson Bank. The 15-year, 7% note requires payments due annually, onMarch 1. Each payment consists of $65,000 principal plus one year's interest.Mortgaged the warehouse for $500,000 cash with Sawyer Bank. The mortgage requires monthlypayments of $5,000. The interest rate on the note is 6% and accrues monthly. The first payment is dueon January 1, 2019.Mar. 1, 2018Dec. 1, 2018Dec. 31, 2018Recorded interest accrued on the Sawyer Bank note.Dec. 31, 2018Recorded interest accrued on the Nelson Bank note.Jan. 1, 2019Paid Sawyer Bank monthly mortgage payment.Feb. 1, 2019Paid Sawyer Bank monthly mortgage payment.Mar. 1, 2019Paid Sawyer Bank monthly mortgage payment.Mar. 1, 2019Paid first installment on note due to Nelson Bank.PrintDoneall the journal entries are recorded.e first three payments, then the remaining months one at a time. (Round your answers to the nearest whole dollar.)Requirements1. Journalize the transactions in the Right Aid Pharmacies general journal.Round to the nearest dollar. Explanations are not required.2. Prepare the liabilities section of the balance sheet for Right Aid Pharmacieson March 1, 2019 after all the journal entries are recorded.PrintDone

Journal entries are passed to record every transaction incurred by a company in the books of accounts to insure correct and true presentation of final accounts. Journal entries are passed to record expenses ,revenues, liabilities payments, interest accrual and so on. 1. Journal Entries in the books of Right Aid Pharmacies Date Particulars Debit Amount Credit Amount 2018 March 1 Cash $975,000 7% Note payable $975,000 Dec 1 Cash $500,000 Mortgage $500,000 Dec 31 Note payable Interest Expense $63,700 Interest on 7% Note payable $63,700 ($975,000 - $65,000) = $910,000 x 7% = $63,700 Dec 31 Mortgage Interest Expense $2,500 Interest on Mortgage payable $2,500 ($5,00,000 x 6% x 1/12) 2019 Jan 1 Interest Mortgage payable $2,500 Mortgage $5,000 Cash $7,500 Feb 1 Mortgage Interest expense $2,475 Mortgage $5,000 Cash $7,475 ($500,000 - $5,000) = $495,000 = $495,000 x 6% x 1/12 = $2,475 March 1 Mortgage Interest expense $2,450 Mortgage $5,000 Cash $7,450 March 1 Notes payable Interest expense $4550 Interest on 7% note payable $63,700 7% Note payable $65,000 Cash $133,250 Interest expense = ($975,000 - $65,000) x 7% x 1/14) 2. Liability section as at March 1, 2019 7% Note payable $910,000 Mortgage $485,000

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Borrowed $975,000 from Nelson Bank. The 15-year, 7% note requires payments due annually, on March 1. Each payment consists of $65,000 principal plus one year's interest. Mortgaged the warehouse for $500,000 cash with Sawyer Bank. The mortgage requires monthly payments of $5,000. The interest rate on the note is 6% and accrues monthly. The first payment is due on January 1, 2019. Mar. 1, 2018 Dec. 1, 2018 Dec. 31, 2018 Recorded interest accrued on the Sawyer Bank note. Dec. 31, 2018 Recorded interest accrued on the Nelson Bank note. Jan. 1, 2019 Paid Sawyer Bank monthly mortgage payment. Feb. 1, 2019 Paid Sawyer Bank monthly mortgage payment. Mar. 1, 2019 Paid Sawyer Bank monthly mortgage payment. Mar. 1, 2019 Paid first installment on note due to Nelson Bank. Print Done the journal entries are recorded. st three payments, then the remaining months one at a time. (Round your answers to the nearest whole dollar.) Requirements 1. Journalize the transactions in the Right Aid Pharmacies general journal. Round to the nearest dollar. Explanations are not required. 2. Prepare the liabilities section of the balance sheet for Right Aid Pharmacies on March 1, 2019 after all the journal entries are recorded. Print Done

Borrowed $975,000 from Nelson Bank. The 15-year, 7% note requires payments due annually, on March 1. Each payment consists of $65,000 principal plus one year's interest. Mortgaged the warehouse for $500,000 cash with Sawyer Bank. The mortgage requires monthly payments of $5,000. The interest rate on the note is 6% and accrues monthly. The first payment is due on January 1, 2019. Mar. 1, 2018 Dec. 1, 2018 Dec. 31, 2018 Recorded interest accrued on the Sawyer Bank note. Dec. 31, 2018 Recorded interest accrued on the Nelson Bank note. Jan. 1, 2019 Paid Sawyer Bank monthly mortgage payment. Feb. 1, 2019 Paid Sawyer Bank monthly mortgage payment. Mar. 1, 2019 Paid Sawyer Bank monthly mortgage payment. Mar. 1, 2019 Paid first installment on note due to Nelson Bank. Print Done the journal entries are recorded. st three payments, then the remaining months one at a time. (Round your answers to the nearest whole dollar.) Requirements 1. Journalize the transactions in the Right Aid Pharmacies general journal. Round to the nearest dollar. Explanations are not required. 2. Prepare the liabilities section of the balance sheet for Right Aid Pharmacies on March 1, 2019 after all the journal entries are recorded. Print Done

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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