This Website Has Been Moved to a New Link


Loading

The following transactions of Emergency Pharmacies occurred during

Price: $3.99


P11-23A Journalizing liability transactions and reporting them on the balance
sheet [30–40 min]

The following transactions of Emergency Pharmacies occurred during 2014 and 2015:

2014
Mar 1 Borrowed $360,000 from Lessburg Bank. The six-year, 10% note requires payments due annually, on March 1. Each payment consists of $60,000 principal plus one year’s interest.

Mar 1 Reclassified current portion of Lessburg Bank note.

Dec 1 Mortgaged the warehouse for $200,000 cash with Saputo Bank. The mortgage requires monthly payments of $4,000.
The interest rate on the note is 9% and accrues monthly. The first payment
is due on January 1, 2015.

Dec 31 Reclassified current portion of the Saputo Bank note for the principal due in 2015 of $31,505. Recorded interest accrued on the Saputo Bank note.

and so on ...

Requirements
1. Journalize the transactions in Emergency Pharmacies’ general journal. Round all
answers to the nearest dollar. Explanations are not required.
2. Assume Emergency Pharmacies only adjusts the current portion of long-term
notes on the last day of each year, December 31. Prepare the liabilities section of
the balance sheet for Emergency Pharmacies on March 1, 2015.

No comments:

Post a Comment