Required Prepare the liabilities section of the balance sheet for Green Pharmacies on March 1, 2017, after
Question:
Required
Prepare the liabilities section of the balance sheet for Green Pharmacies on March 1, 2017, after all journal entries have been posted. First, prepare a depreciation plan for the Saban Bank mortgage until March 1, 2018.
Prepare the plan for the first three payments, then the remaining months one at a time.
Information
March 1, 2016: Borrowed $400,000 from Coconut Creek bank. The eight-year 5% promissory note requires payments to be made annually on March 1. Each payment consists of $50,000 Principal plus one year's interest.
December 1, 2016: Mortgage the warehouse with Saban Bank for $150,000 in cash. The mortgage requires a monthly payment of $6,000. The interest rate of the promissory note is 6% and accrues monthly. The first payment will be made on 1 January 2017.
31 December 2016: Registered interest accrued on Saban Banknote.
December 31, 2016: Registered interest accrued on the Coconut Creek Note.
January 1, 2017: A monthly housing loan payment was made to Saban Bank.
February 1, 2017: Monthly housing loan payment was made to Saban Bank.
March 1, 2017: Monthly housing loan payment was made to Saban Bank.
March 1, 2017: Due to Coconut Creek Bank, the first installment was paid by promissory note.
Horngrens Accounting The Financial Chapters
ISBN: 9780136162186
13th Edition
Authors: Tracie Miller Nobles, Brenda Mattison