The following transactions of Emergency Company are as follows Mar. 1

Borrowed $330,000 from Longwood Bank. The six-year, 13% note requires payments due annually, on March 1. Each payment consists of $55,000 principal plus one year's interest.

Dec. 1

Mortgaged the warehouse for $600,000 cash with Sawyer Bank. The mortgage requires monthly payments of 10000. The interest rate on the note is 6% APR and accrues monthly.

The first payment is due on January 1, 2017.

Dec. 31

Recorded interest accrued on the Longwood Bank note. Interest is accrued at year-end only.

Dec. 31

Recorded interest accrued on the Sawyer Bank note. Interest is accrued at fiscal year-end only.

2017

Jan. 1

Paid Sawyer Bank monthly mortgage payment (use payable account for interest portion of payment)

Feb. 1

Paid Sawyer Bank monthly mortgage payment (use expense account for interest portion of payment)

Mar. 1

Paid Sawyer Bank monthly mortgage payment (use expense account for interest portion of payment)

Mar. 1

Paid first installment on note due to Longwood Bank (use payable for 2016 interest and expense for 2017 interest)

Requirements:

1. Prepare an amortization schedule for the note for the entire term. (USE EXCEL FORMULAS)

2. Prepare an amortization schedule for the mortgage for the entire term. (USE EXCEL FORMULAS)

3. Prepare a pivot table for the Sawyer Mortgage and organize the information by year. Include principal, interest and payments for each calendar year. Locate Pivot table within Mortgage amortization tab

4. Journalize the transactions for 2016 and 2017, round all answers to the nearest dollar.

5. Prepare the liabilities section of the balance sheet for Emergency Pharmacies on March 1, 2017 after all the journal entries have been recorded.

Answer rating: 100% (QA)

Date Debit Credit 2016 01Mar Dr Cash 330000 Cr Note payable 330000 01... View the full answer